Should You Keep the MPF Preserved Account?

What are the three ways to handle old MPF on a job change?

In July 2011, Convoy adviser Kenrick Chung outlined three options: leave accrued benefits in the original scheme, transfer to the new employer’s scheme, or move to a preserved account under a scheme of your own choice. The laziest is staying put — you can still switch later. Moving to the new employer’s scheme simplifies management but locks the money until the next job change. The self-chosen scheme is most flexible for picking preferred products, at the cost of research time.

What should you watch for?

Fees are often overlooked — differences compound into big gaps. Compare fund expense ratios before moving, and note guaranteed funds’ lock-in terms: transferring out may forfeit the guarantee.

Too many preserved accounts?

Consider consolidating for easier management; if you’ve lost track, visit any MPFA office with your ID or file form PA-SM to trace them.