Switching Takes Six to Eight Weeks: Employee Choice Launches Tomorrow

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

MPF semi-portability (the Employee Choice Arrangement) launched the next day. MPFA executive director Gabriella Yee said sales activity would intensify, with the MPFA, HKMA, Insurance Authority and SFC monitoring closely against mis-selling. Before switching, a few things to know.

How long does switching take?

Six to eight weeks. Yee said an e-platform for data storage and transfer was ready, with a settlement e-platform under study — about a year to build — potentially shrinking the whole transfer to around a week.

What are the switching rules?

Once a year, employee contributions only. Fresh monthly contributions keep flowing to the employer’s designated account; the employer portion can’t move. Fund-combination switches are unlimited; trustee switches, once a year.

Why no full portability yet?

The offsetting law stands in the way. Under existing law, employer contributions can offset severance and long-service payments; full portability — or routing new contributions straight to personal accounts — would burden employers’ admin. Relaxation studies had begun, but further reform was at least three years out.

What is the lesson from 2012?

“Six to eight weeks” was 2012’s standard answer — unbelievable today. E-processing took years to shorten the slog, but Yee’s point still holds: rather than rushing to switch, learn the rules first — once a year, not whenever you fancy.