What Did the Industry Think of the Employee Choice Arrangement?

What did fund houses say in May 2011?

Towers Watson gathered industry views on the ECA: Invesco’s Desmond Ng said employees could transfer their own contributions to a personal account of their choice once a year as a lump sum — more control, but members must do thorough homework, pick a provider and stick with it rather than scattering small accounts. Schroders’ Kelvin Lee welcomed choice but wanted clear anti-misselling guidelines; Fidelity’s KP Luk backed the ECA, noting 60% of benefits becoming transferable would spur competition and fee cuts; RCM’s Elvin Yu said members were ever more sensitive to performance gaps employers couldn’t address.

What should members watch?

One transfer a year — compare fees, performance and service first; once chosen, don’t keep switching.

What can workers do now?

Compare trustees’ fees and fund performance at MPF fund comparison to prepare.