How should start-up employers choose an MPF trustee? Don’t look at fees alone

Before the Employee Choice Arrangement took effect, choosing the MPF trustee remained the employer’s duty. With 19 MPFA-approved trustees at the time, what criteria should a new start-up employer use?

What mistake do employers often make?

Looking only at business relationships and fees. Cash-strapped founders wore many hats, and many picked trustees based on existing banking ties and charges, overlooking other critical factors. But MPF is not an ordinary investment product — it underpins employees’ retirement, is tightly regulated by the MPFA and the law, and involves complex administration where missteps can land employers in legal trouble.

What criteria should apply?

1. Financial strength: the trustee must have resources to keep improving systems, products and service; multinational players with international vision tend to be better resourced in capital, talent and infrastructure.
2. Pensions experience: trustees with years of local and overseas retirement and asset-management experience beyond MPF are better equipped.
3. Administrative support: a good trustee lightens the MPF paperwork load for busy employers.

For employers, choosing the right trustee is both a legal duty and a commitment to staff. For employer obligations, see the MPF education hub.