MPF “semi-portability”: Convoy was already pushing it back in 2011

Two days after the 2011 Policy Address landed with no universal pension in sight, the chairman of Convoy Financial Services went on the record: with MPF set to become Hongkongers’ main source of retirement income, the government had no excuse to drag its feet on MPF “semi-portability” — and should fix the supporting measures fast.

What was MPF “semi-portability”?

MPF “semi-portability”, formally the Employee Choice Arrangement the authorities were preparing in 2011, would let employees transfer the accrued benefits from their own MPF contributions to a trustee and scheme of their choice, while the employer-contribution portion stayed put. The Convoy chairman argued it would widen choice for employees and sharpen market competition, pushing down MPF management and administration fees.

What was his “do-it-yourself MPF” idea?

The “do-it-yourself MPF” was the chairman’s 2011 call for self-reliance: MPF was only the foundation of retirement protection, so every Hong Kong worker should build a separate, suitable investment or savings plan on top of MPF to top up what the mandatory system could not provide.

Semi-portability did eventually launch, giving employees their first real vote-with-their-feet power over MPF schemes. For background on how the system works, see the MPF education hub.