MPF personal accounts face no annual switching limit

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

Era context: The original was short, covering a frequently misunderstood detail of semi-free choice: the once-a-year transfer limit applied only to current contribution accounts. Money already in personal (preserved) accounts could be moved without limit — a distinction many workers missed in 2012.

An MPFA senior liaison manager told a seminar that after the November 1 launch, employees could move their current contribution portion to another MPF personal account once per calendar year, while mandatory contributions from past jobs could be shifted into a personal account anytime.

What made personal accounts special?

Contributions already moved into a personal account were not bound by the annual limit — members could transfer personal-account money to other MPF personal accounts at any time, without restriction.

He urged employees to weigh providers’ service, fees, fund choices and personal factors when switching, hoping the scheme would widen choice, sharpen competition, improve product quality and push fees down.

The authority had begun a major publicity drive, writing to all Hong Kong employers and distributing posters for workplaces.