What MPF providers do for employers: calculations, spreadsheets and human help

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

A previous instalment covered what MPF providers do for members; this one turned to employers. Many bosses chose schemes on fees and fund performance alone, overlooking the employer-side services — which deserved a closer look. (A few garbled characters in the original have been reconstructed from context.)

Three services providers offer employers

First, account balance enquiries. Employers could check the company’s total MPF plan and individual staff balances online — though privacy rules limited them to the employer portion.

Second, contribution calculations. The most practical help: the law required enrolment within 60 days of hiring, but counting day 60 was fiddly, and monthly contributions had to respect relevant-income caps and definitions. Many providers supplied spreadsheet templates — enter the staff ID number, name, start date and month’s relevant income, and the computer calculated employer and employee mandatory contributions accurately. Some offered fuller payroll software covering voluntary contributions, staff records, salary calculations, tax reports and leave records.

Third, human service. Technology advanced, but human distance grew; for companies of any scale, many providers assigned a real client service manager a phone call away.

When choosing a scheme, alongside fees and performance, employers were advised to ask: how solid is your administrative support? Getting that right was what kept companies compliant.