The HK$6,000 Injection: Who Benefited First?

The HK$6,000 Injection: Who Benefited First?

In February 2011, critics noted the HK$6,000-per-account injection benefited trustees first: on HK$24 billion at 5% a year, they’d collect about HK$252 million in extra management fees in year one — while members waited decades. Lawmakers urged fee discounts on the special injection.

How did the industry respond?

Sun Life said cuts depended on operating costs; others said HK$6,000 mixed into existing accounts couldn’t be split out for fee purposes, while separate accounts raised admin and legal issues. Bank Consortium’s Lau Ka-shi argued fee cuts should target overall assets, not just the HK$6,000. The MPFA said it was considering it.

What did Ip Wai-ming say?

“This is taxpayers’ money — trustees benefit indirectly and should consider cutting fees,” said lawmaker Ip Wai-ming, adding the last low-income injection had heavy admin costs and tax rebates would be simpler.

What would HK$6,000 become in 30 years?

About HK$25,000-plus at 5% a year. But as Convoy’s Chung Kin-keung noted, it was a tiny slice of anyone’s retirement. Compare MPF funds to grow your own pot.