Hong Kong’s MPF to launch electronic platform in June, in biggest overhaul since starting in 2000
- The new system will allow the 12 MPF providers, 357,000 employers and 4.75 million members to manage the assets through a single platform
- YF Life Trustees, the smallest of the MPF providers, will be the first to move to the platform, while HSBC Holdings, the largest, will be the last to do so
The Mandatory Provident Fund (MPF), Hong Kong’s pension-fund operator, will start its electronic platform in June, in the biggest overhaul of the city’s compulsory pension programme since it started in 2000.
The eMPF Platform is due to begin service on June 26, when the first scheme joins it, the Mandatory Provident Schemes Authority said in a press release on Sunday. The remaining schemes will be added to the platform over time through to 2025, in accordance with the ascending order of the value of assets under management by trustees, it said.
“Once their respective MPF scheme gets on board the platform, employees registered on the platform can access their MPF accounts and review their MPF anytime, anywhere on the platform via smartphone or computer,” the authority said. “For example, they can check if their employers have made MPF contributions on time, with a view to protecting their own MPF rights.”
Hong Kong’s MPF delivers HK$6,000 to each member with 2.47% first-quarter gain
The MPF recorded a loss of 4.7 per cent in the Year of Rabbit, the lunar year that ended in February, after an 8.6 per cent loss for the preceding Year of Tiger, according to MPF Ratings.
The eMPF Platform will help to better protect the interest of the members by eliminating human errors. Currently, many employers calculate and handle employees’ MPF contributions manually, which increases the probability of errors that affect employee benefits. When the employers join the platform, contributions will be automatically made to avoid errors.
The platform will also enable the pension-fund regulator to collect employer contribution status and default contribution reports faster, expediting its enforcement work in handling non-compliance cases, according to the press release. For instance, the time frame for issuing payment notices is expected to be halved from the current six weeks after the contribution day, prompting non-compliant employers to settle the arrears as soon as possible.
