Semi-portability survey: 45% won’t switch MPF providers — too much hassle

MPF semi-portability (the Employee Choice Arrangement) is nearly here, but a survey finds nearly 45% of workers won’t switch providers — mainly because it’s too much trouble.

Why not switch?

Saving a few dollars isn’t worth the paperwork. The top reason is hassle, followed by satisfaction with the current provider; some say fee differences are trivial — a few dollars a year doesn’t justify the effort. The MPFA says it will promote the benefits of semi-portability and urge workers to shop around.

What should switchers watch?

Look beyond fees to performance. Semi-portability only covers the employee’s own contributions — the employer’s portion stays put. Before switching, compare providers’ fund expense ratios AND long-term performance, not just who’s a few dollars cheaper.

To compare providers’ fees and performance, visit MPF fund comparison.