MPF Ceiling Rise to Bring HK$2.6 Billion a Year: Trustees Gird for June 2012

The government had signed off on raising the MPF contribution ceiling from June 2012, costing higher earners HK$250 more a month. The MPF contribution rate itself stayed at 5% — only the ceiling moved. The industry did the rough maths: about HK$217 million in fresh contributions a month, over HK$2.6 billion a year — roughly an 8% top-up to the entire MPF pool. Trustees were already rolling up their sleeves for the new money.

How much extra would the higher MPF ceiling pump into the system?

From 1 June 2012, the maximum relevant income level rose from HK$20,000 to HK$25,000, and the industry estimated fresh contributions of about HK$217 million a month — over HK$2.6 billion a year; against the then-monthly inflow of about HK$2.8 billion, that was roughly 8% growth. BOC-Prudential Trustee, fourth by market share, estimated about HK$200 million a year extra for itself, though its CEO 陳禹昌 cautioned that some voluntary contributors might stop topping up, so the net figure could be smaller.

Who pays how much more?

Trustees’ four-point battle plan

Fifth-ranked BCT was ready: managing director and CEO 劉嘉時 said it would offer four support measures for employers and employees alike:

1. Special newsletters and briefings explaining the new measure;
2. Upgraded payroll, contribution systems and contribution calculation sheets;
3. Testing of employers’ own payroll file samples against BCT’s system;
4. A hotline for member enquiries.

Manulife — the “number two” player — expected contribution income to rise each year, helping employees and the self-employed build bigger retirement reserves, but declined to put a number on it.

Contribution ceilings and calculations are explained at the MPF education hub.