Know more about the Employee Choice Arrangement: how often? Can employer money move?

This article is a rewrite of a report from August 2012.

(Editor’s note: isolated characters were missing in the original and have been conservatively restored from context.) The Employee Choice Arrangement (“MPF semi-free choice”) launched on 1 November 2012, letting employees move accrued benefits from current employee mandatory contributions (contributions plus returns) to a chosen trustee and scheme. The MPFA’s info station ran a series explaining the details:

Is transfer frequency limited?

Once a year, all in one lump sum. Employees may transfer once between 1 January and 31 December each year, moving the full amount to a single trustee.

Can my current employer’s contributions move?

No. Transferable accrued benefits cover the employee portion only — not the employer’s.

After switching, will my employer pay into the new trustee?

No. “Semi-free choice” doesn’t change your employer’s future contributions: whether or not you exercise the right, your employer keeps paying both portions to the original trustee (the employer’s choice) each pay cycle — not your chosen trustee.

Can old and new money move separately?

Yes. If you previously moved former-employment mandatory contributions into your current account, that pool needn’t move with the current account’s balance — the two can be handled separately and needn’t go to the same trustee and scheme.

MPFA hotline: 2918 0102