Why Was Full MPF Portability So Hard?

Why was “full portability” deemed difficult in November 2010?

A November 2010 report said letting employers offset long service payments with MPF employer contributions was the biggest barrier: if staff could move employer contributions and invest badly, there might not be enough left for severance. The offset was a decade-old compromise to win employer support for MPF, and the MPFA said it couldn’t simply go.

What was the authority’s plan?

Push semi-portability only — staff moving just their own contributions; full portability would need legislation, e.g. basing severance on actual employer contribution totals.

When would semi-portability arrive?

Expected in 2012; compare trustees early at MPF fund comparison.