The 1.5 orphan accounts every Hong Kong worker owned in 2012

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

As of March 2012, Hong Kong had 4.035 million MPF preserved accounts — against only about 2.576 million employees and self-employed persons, or roughly 1.5 preserved accounts per worker. A survey found nearly half of respondents had never consolidated theirs.

What are the types of MPF accounts?

If the old scheme’s trustee receives no instructions within three months of departure, accrued benefits move automatically from the contribution account to a preserved account. Members may also transfer them to a preferred scheme or into the new employer’s contribution account.

What should you do with old MPF accounts after changing jobs?

The first step is consolidation: gather scattered preserved accounts into one. Too many accounts add management time and complexity, make it easy to lose track of the overall portfolio, and cause members to miss chances to adjust funds as markets move.

Four steps to consolidate preserved accounts

1. Find out how many you have: the MPFA keeps every member’s records and can tell you.
2. One form per account: complete a “Scheme Member’s Request for Fund Transfer Form” for each account.
3. Submit to the new trustee: hand the forms to your chosen new MPF trustee.
4. No need to notify the former employer: consolidation requires no notice to past employers.

Before consolidating, compare schemes to find one that suits you.