MPF employer obligations Hong Kong: can staff pick their own scheme?

An MPFA advice column fielded a question from a beauty-salon owner: her staff wanted the company to offer more than one MPF scheme to choose from. She wanted to oblige them, but worried about the extra administration. The column’s answer was unequivocal: giving employees more MPF choice is win-win for both sides.

Can an employer offer more than one MPF scheme?

Yes. An MPFA advice column said offering staff a choice of MPF schemes is win-win: employees can pick funds that suit them, while the employer shows it cares and builds loyalty. Employers should first ask staff what they want, compare trustees on service, fees and fund range, then handle the joining paperwork.

Why it’s win-win

The steps

1. Talk to staff: find out what they think of the existing scheme or trustee, and what they expect from a new one.
2. Compare trustees: compare service, fees and fund range across trustees, and pick the scheme closest to staff needs.
3. Join the new scheme: contact the new trustee to complete the participation formalities.
4. Share the documents: give current employees the new scheme’s materials — offering documents, member guides and the like — so they can choose.
5. File the transfer forms: if an employee wants to move from the old scheme to the new one, the employer must complete the “Employer Fund Transfer Application Form” and the employee’s new-scheme enrolment form, and submit them with the required documents to the new trustee.
6. Notify the old trustee: tell the existing trustee that the employee is moving, so it can follow up.

The employer sets the transfer cap

Where an employer offers more than one scheme, employees may transfer accrued benefits between them, with the employer deciding the maximum number of transfers. Questions can go to the MPFA hotline on 2918 0102, or see the MPF education guides.