Semi-free choice guide (1): which MPF contributions can you move?

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

Two months before the Employee Choice Arrangement took effect, the first thing to get straight was: which contributions can move, and which cannot.

MPF account types: which accrued benefits are transferable?

Benefit type	Before	After ECA
Current employer’s mandatory contributions	Not transferable	Not transferable (stays in employer’s scheme)
Employee’s current mandatory contributions	Not transferable	Transferable (once per calendar year, lump sum)
Past employment mandatory contributions	Not transferable	Transferable (anytime, full lump sum)
Current employer’s voluntary contributions	Not transferable	Not transferable
Employee’s current voluntary contributions	Not transferable	Depends on employer’s participation agreement
Past employment voluntary contributions	Not transferable	Depends on employer’s participation agreement

The golden rule: only the employee’s portion can move; the employer’s portion always stays put.

What two preparations should you make before switching?

A Fidelity Hong Kong institutional business director advised using the two months to prepare:

1. Know your account details. Original trustee name, scheme name, member account number, and current profit/loss on accrued benefits — all needed on the transfer form. Find them on the annual benefit statement or ask the original trustee. Forgotten how many preserved accounts you have? Ask the MPFA which trustees hold them.

2. Verify your signature on file. The transfer goes through the new trustee directly — no employer involvement. But the form must be accurate and complete, documents in order, and the signature must match, or the application will be delayed.

How long does the transfer take?

About six to eight weeks: the new trustee checks the form and forwards it; the old trustee verifies, redeems fund units and transfers the cash; the new trustee allocates it to the chosen constituent funds. There is an investment gap during the switch — more on that next time.

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