Why Was MPF Considering Early Withdrawals of Up to 30%?

What Did the MPFA Propose?

The MPFA proposed letting members withdraw up to 30% of contributions early on compassionate grounds — critical illness, children’s education, home purchases — with consultation as early as year-end. Chairwoman Anna Wu said the cap could be 20%, 25% or 30% of contributions, “but personally I don’t think it should be 50%.”

How Much Could Be Withdrawn?

With about 2.51 million employee contributors and $390 billion in total assets, the average account held $155,000 — 30% would mean up to $46,500 accessible early.

What Were the Concerns?

Academics and trustees worried that loose compassionate criteria would swell administrative burdens and tempt early withdrawals. Convoy’s Chung Kin-keung noted withdrawals cost no interest but sacrificed future returns; the insurance federation’s Patrick Poon feared case-by-case vetting would balloon admin costs and block fee cuts.