How Should Employers Choose an MPF Scheme? Three Factors Beyond Price
2010-11-20
Chun-sum wants to add another MPF scheme for his staff but can’t make sense of the trustee brochures. Columnist Ah Sik says employers should talk to staff about what they want from a trustee — and weigh three indispensable factors.
The three factors
| Factor | Look at |
|---|---|
| Service scope and standards | Contribution software, detailed records, simple admin, regular staff seminars |
| Fund choice breadth | More diversified choice makes it easier for staff to find a fitting mix |
| Fund fees | Enrolment, annual, transaction and management fees (some waived or discounted) |
How to compare fees?
The MPFA’s fee comparison platform lays different MPF funds’ charges side by side.
Choosing a scheme isn’t just about admin convenience. Where staff retirement money sits shapes their lives decades out; asking staff what they want is what responsible employers do. Compare MPF funds’ fees and returns at MPF fund comparison.
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