Semi-free choice transfers took six to eight weeks — with no interest earned

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

Era context: The original was short, recording a technical warning from an MPFA senior manager at a seminar. In 2012 transfers were not instant — the process took six to eight weeks, during which money earned no interest, sat uninvested, and faced price risk. That slowness was the detail most people underestimated.

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 were the risks during the transfer?

The process took six to eight weeks; fund prices could move in the interim, and employees earned no interest during the switch. In other words, the money travelled “uncovered” — no return, plus price exposure.

The MPFA’s website offered price comparisons across MPF services but no performance comparisons; members seeking performance data could check the investment funds association’s website.