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ECA gives greater autonomy of choice to employees, allowing them to choose their own MPF trustee(s) and scheme(s), thus encouraging them to manage their MPF investments more actively and thereby further enhance market competition.

• ECA allows employees to transfer from their MPF contribution account the MPF (i.e. the accumulated contributions and investment returns) derived from their mandatory contributions to a scheme of their choice (New Scheme). Such transfers can be carried out on a lump-sum basis once every year#. 
  
• In addition, if employees have transferred the MPF derived from mandatory contributions relating to their former employment or self-employment to their contribution account under current employment, they can transfer those benefits on a lump-sum basis to a New Scheme at any time. 
  
• If employees are satisfied with the scheme chosen by their employers (Original Scheme), they do not have to make any transfer. 
  
• Important note: Employees cannot transfer the MPF derived from the employer mandatory contributions. Such benefits must be retained in the Original Scheme until cessation of employment of the employees. 
  
  

#Every year means the period from 1 January to 31 December in any given year. 

No. Employees should send an Employee Choice Arrangement - Transfer Election Form (Form MPF(S) - P(P)) to the trustee(s) of the Employee Choice Arrangement to handle the procedures.

There is no impact on employers, for the following reasons:

• Employers do not need to be involved in the process of transferring MPF.
• The MPF administrative arrangements handled by employers in respect of their employees remain unchanged. Employers continue to choose, enrol their employees to the MPF schemes (Original Scheme) and make contributions to the Original Scheme for their employees (including both employer and employee contributions).
• ECA does not affect the employers' administrative arrangements on offsetting of severance payments or long-service payments. The MPF derived from employer mandatory contributions during their employees' current employment cannot be transferred out.

No. After employees have made a transfer of their MPF under ECA, their employers will continue to make MPF contributions (for both the employer and employee portions )to the schemes chosen by the employers, and not to the new MPF account chosen by the employees.

No. Even employees have transferred their MPF under ECA, employers will continue to make contributions (including both employer and employee contributions) to the MPF scheme chosen by the employers.

Employers or their human resources staff can help by doing the following:

• Provide employees with the name of the scheme selected by employers (Original Scheme), and the name and identification number of the employer for filling the Employee Choice Arrangement (ECA) - Transfer Election Form (Form MPF(S) - P(P)).
• Provide employees with contact details of the trustee of the Original Scheme and the MPFA so that they can find out more about ECA.
• Learn more about the ECA details to assist employees who have queries.
• If employers have arrangements for voluntary contributions, help the employees learn about the rules for transferring MPF derived from such contributions, and answer related enquiries.

 

In addition, employers should continue to:

• review the services of the selected trustee regularly and seek their employees’ opinions to better understand the performance of the trustee; and
• consider offering more than one MPF scheme for employees to choose from, so that employees can choose the MPF services and funds that best suit their needs.

 

Please refer to the "Employers’ Handbook on MPF Obligations".

There is no impact on self-employed persons. They can still enrol themselves in a MPF scheme of their own choice (Except the Employer-sponsored Scheme). ECA does not have any impact on the contribution arrangements or the procedures for transferring their MPF. Their rights and obligations under the MPF System remain unchanged.