Why Did a Union List MPF’s “Seven Deadly Sins”?

What Were MPF’s “Seven Deadly Sins”?

The FTU accused MPF operations of seven sins, including weak enforcement against defaulting employers, no penalty for trustees who failed to report defaults, and employees left in the dark about whether bosses had contributed. Nearly a decade into MPF, the MPFA still received over 6,000 default complaints last year.

How Bad Were Contribution Defaults?

Default complaints rose from 3,736 in 2001 to 6,400 in 2009, up more than 70%. Lawmaker Ip Wai-ming noted one employer who owed $2 million was fined just $20,000, and no employer had been jailed — deterrence was lacking.

What Did the Union Propose?

The FTU urged tougher penalties, a public blacklist of offending employers, and even barring them from public works tenders for five years. It also proposed a $20,000 fine per worker per month of default, and for the MPFA to proactively notify affected employees.
Fees directly eat into retirement savings — compare MPF funds on charges and returns to avoid plans that erode contributions.