Too much trouble to swap, workers in MPF survey say

More than half of SAR employees are unlikely to change their mandatory provident fund providers because they think making the move is too complicated and troublesome, the latest survey has found.

The poll was commissioned by AIA Pension and Trustee and carried out by Cimigo and took in 615 locals between November 26 and December 12 on the Employee Choice Arrangement.

Only 7 percent of respondents had changed their MPF providers and 37 percent said they will consider changing, while 56 percent said they will remain with the same institutions.

Cimigo conducted the survey three months after the implementation of the “semi-portability scheme” on November 1, which allows members once a year to transfer their direct contributions to any trustee and scheme.

AIA, the third-largest MPF provider in the SAR, said its members are mainly concerned about the investment return and management fees of MPF funds, as well as their reputation.

Between November last year and January 15, the Mandatory Provident Fund Schemes Authority received about 35,000 applications from employees seeking to change their schemes, the watchdog said last Thursday.

The AIA-commissioned poll also found nearly 60 percent have a wrong perception that future mandatory contributions made by employers will also be deposited with the new trustee if they switch providers.

Bonnie Tse Pui-lan, chief executive of AIA Pension and Trustee, declined to reveal the number of employees that have switched to join the firm, saying it is too soon to tell.

Commenting on the possible imposition of a fee cap on MPF funds, Tse said such a move is unnecessary.