Information Centre

FAQ

MPF System

Procedure for transferring MPF

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1. How do employees obtain the "Employee Choice Arrangement (ECA) - Transfer Election Form"?
Employees can obtain the "Employee Choice Arrangement (ECA) - Transfer Election Form" (Form MPF(S) – P(P)) from the chosen MPF trustee. The form can also be downloaded from the MPFA website.
2. If employees decide to transfer their MPF, should they make an application to the trustees of the scheme selected by employers (Original Scheme) or the trustees of the scheme of their own choice (New Scheme)?

Employees only need to approach their chosen trustees and submit the completed Employee Choice Arrangement (ECA) – Transfer Election Form (Form MPF (S) – P(P)) (Transfer Form).

Employees should first check whether they already have MPF account with the New Schemes.

  • If yes, they can fill in the Transfer Form and submit it to the trustees of the New Scheme.
  • If not, they should contact the trustees of the New Scheme to arrange enrolment before or at the time they submit the Transfer Form.
3. What information do employees need to submit to their trustees of the scheme of their own choice (New Scheme) to effect the transfer?

When submitting the "Employee Choice Arrangement (ECA) - Transfer Election Form" (Form MPF (S) – P(P)) to the trustees of the New Scheme, employees need to provide the following information:

 

  • Personal particulars (name, ID number, contact phone number, correspondence address, etc.)
  • Details of the contribution account under the scheme selected by employers (Original Scheme)* (name of Original Scheme, scheme member’s account number under the Original Scheme and employer’s identification number)
  • Which part(s) of the MPF to be transferred (transfer all or part(s) of MPF)
  • Details of the MPF account in the New Scheme (name of the New Scheme, scheme member account number under New Scheme, etc.)
  • Signature (has to be the same as the record with the trustee of the Original Scheme)

 

* Employees can obtain information on their contribution accounts regarding the Original Schemes in their membership certificate or notice of participation and from the latest annual benefit statement issued by the trustee of the Original Scheme, or through the enquiry service (such as enquiry hotline) provided by the trustee of the Original Scheme to its members.
4. How do employees submit the Transfer Form?
Employees can submit the Transfer Form directly to the trustee of the scheme of their own choice via the channels provided by the trustee (such as in person or by mail). Employers are not required to be involved in the process.
5. Do employees need to submit the Transfer Form via their employers?
No. Employers are not required to be involved in the transfer process. Employees can submit the Transfer Form directly to the trustee of the scheme of their own choice.
6. Why does it take two to three weeks to complete the transfer process, once the trustee of the scheme of the employee's own choice (New Scheme) has received instructions from an employee to transfer his or her MPF?

MPF transfer involves buying and selling of MPF investment funds. The whole process includes a number of steps undertaken by the trustees of both schemes, and therefore generally takes about two to three weeks to complete. These steps include:


  • Trustee of the New Scheme receives the Transfer Form and verifies the information in the Form, and then sends the Transfer Form to your trustee of the Original Scheme.
  • Trustee of the Original Scheme receives the Transfer Form from the trustee of the New Scheme and verifies the information and your signature in the Form; sells the fund units in your contribution account and sends the relevant amounts to the trustee of the New Scheme.
  • Trustee of the New Scheme receives the amounts from the trustee of the Original Scheme and uses them to buy fund units in accordance with your instructions.
  • On completion of the transfer process, you will receive a “Transfer Statement” from the trustee of the Original Scheme and a “Transfer Confirmation” from the trustee of the New Scheme. You should check both documents to ensure that the transferred amount and the account details are correct.
7. Why is there a time lag of one to two weeks during the transfer process for MPF?
During the transfer process, the trustee of the scheme selected by employers (Original Scheme) has to redeem the fund units from the employee's account and sends relevant amounts to trustee of the scheme of employees' own choice (New Scheme). The trustee of the New Scheme receives the amount and allocate to the constituent funds chosen by the employee. After the trustee of the Original Scheme has redeemed the funds and before the trustee of the New Scheme subscribes to the new funds, there will generally be a time lag of one to two weeks during which the MPF will not be invested in any fund. During this period, fund prices may change due to market fluctuations and there is a risk of a “sell low, buy high” scenario occurring. For instance, if the fund price is on an upward trend, your existing fund units in the Original Scheme may be sold at a low price level, while the new fund units in the New Scheme be bought at a relatively higher price. Employees should be mindful of this risk before making a transfer.
8. Can employees request their trustees to buy or sell fund units at a specified price?
No. Like the general fund investments, MPF funds are traded on a "forward pricing" basis, meaning that their execution price is calculated on the basis of their net asset value after the market closes on the relevant trading day. Therefore employees cannot specify the price of a fund when buying or selling fund units.
9. How do employees know that the process of transferring MPF has been completed?
On completion of the transfer, employees will receive a Transfer Statement from their trustees of the scheme selected by employers, and a Transfer Confirmation from the trustees of the scheme of employees' own choice (New Scheme), confirming that the MPF have been transferred to the New Schemes so that the employees can check to ensure the transferred amount and the account details are accurate.
10. Will the trustee of the scheme selected by employers record the date and the amount of the fund redemption on the Transfer Statement?
Yes. The date and the amount of the fund redemption will be recorded on the Transfer Statement for the employees' reference.
11. If an employee submits a Transfer Form at the end of the current year and the transfer process is not completed until the next year, will it count as exercising his or her transfer right this year or next year?
If the trustee receives an employee's Transfer Form on or before 31 December this year and the information is correct, this will count as an exercise of the transfer right in the current year (even if the transfer process is not completed until the following year).

However, if employees plan to make a transfer close to the end of a year, they should allow enough processing time when submitting the form to avoid any delay arising from inadequate or wrong information. Otherwise, employees may lose the transfer right for that year.
12. How can an employee enquire about the status of a transfer process?
Employees should contact the trustee of the scheme they have chosen to obtain this information.
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