Hong Kong Delays MPF Member Choice — and Only Goes Halfway

(Editor’s note: this report was originally in English and is rewritten in Chinese per this site’s practice.)

In December 2010 the Hong Kong government postponed the MPF “Employee Choice Arrangement” due in April 2011 — and the version on the table only lets employees move the accrued benefits from their own contributions, not their employer’s.

Why the delay?

The government says 20,000-plus intermediaries must be regulated first. Regulators and training for intermediaries had to come before member choice could work smoothly. The industry, already prepared, was left disappointed along with employees.

What can employees actually transfer?

Only the employee-contribution portion. Under the arrangement, employees may move only the accrued benefits from their own contributions to a scheme of their choice; the employer’s contributions stay with the employer’s chosen scheme. As the original piece noted, this half-measure fails to give workers genuine choice.

When will it happen?

No new date was given. The government offered no fresh timetable beyond promising to sort out intermediary regulation first. Compare MPF funds’ fees and returns at MPF fund comparison.