MPF must not lose its way: deliver semi-portability first, talk full portability later

MPF has run for nearly 11 years. In this long-term retirement arrangement, equity funds have averaged just over 5% returns — enough to offset inflation over the same period — and thanks to the MPFA’s efforts, public engagement with MPF is far higher than before. On promotion and retirement awareness, the MPFA has delivered. Yet MPF fund fees remain the system’s most criticised flaw — and some policies disappoint, raising doubts about the MPFA’s direction.

Why has semi-portability dragged on?

Semi-portability — letting employees choose where their own contributions go — was meant to start last year, introducing competition to ease the long-criticised problem of excessive MPF fund fees. But legislation takes time; the scheme has slipped repeatedly, with scrutiny unlikely to finish before next LegCo session — not even a launch timetable exists.

Why not rush to full portability?

Talking up full portability while semi-portability hasn’t arrived only inflates expectations; when full portability fails to materialise quickly, the expectation gap damages credibility. This column supports full portability — but first things first: policy credibility comes from delivering promises, not writing new ones.

For background on the Employee Choice Arrangement, visit the MPF education hub; to compare MPF fund fees across schemes, see MPF fund comparison.