Information Centre

FAQ

MPF System

Transfer Arrangements

What can be transferred

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1. Are employees allowed to transfer all of the MPF derived from their mandatory contributions (including both employee and employer portions)?

No. Employees are allowed to transfer only the following:

  • The MPF derived from employee mandatory contributions in their contribution account under current employment; and
  • The MPF derived from the mandatory contributions relating to former employment or self-employment which have been transferred to their contribution account under current employment.

 

The MPF derived from current employer mandatory contributions are non-transferable and have to be retained in the scheme selected by employers (Original Scheme) until cessation of employment of the employees.

2. Are employees allowed to transfer only part of the MPF derived from their mandatory contributions?
No. The MPF in the contribution account has to be transferred on a lump–sum basis whether they are derived from the employee mandatory contributions made during current employment or mandatory contributions from former employment or self-employment. 
3. Can employees choose to transfer only the MPF derived from mandatory contributions made during former employment or self-employment, and not the MPF derived from the current employee mandatory contributions?

Yes. You do not need to transfer all your transferable MPF at one time. If you prefer, you may transfer selected part(s) of the MPF in your contribution account under ECA. For example, you can choose to transfer only the MPF derived from the mandatory contributions from former employment in your contribution account, while retaining other parts of the MPF (e.g. employee mandatory contributions from current employment) in the account.  The selected part(s) of your MPF must be transferred in a lump sum. For example, if you have $40,000 of MPF derived from employee mandatory contributions in your contribution account, the entire $40,000 must be transferred in one go.

 

Note that the MPF derived from the employee mandatory contributions can only be transferred to the personal account, while those derived from the mandatory contributions during former employment or self-employment can be transferred to either the personal account or another contribution account.

4. Can employees transfer the MPF derived from voluntary contributions they have made in their contribution account after ECA is implemented?
The transfer arrangements for the MPF derived from voluntary contributions are subject to the governing rules of the scheme selected by employers (Original Scheme). Contact your employer and the trustee of the Original Scheme to find out more about the governing rules of individual schemes.
5. Can ORSO scheme members transfer their asset under ECA?
ECA does not apply to ORSO schemes. Transfer arrangements are subject to the governing rules of the individual ORSO schemes.

Frequency of transfer

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1. Do employees have to exercise their transfer right under ECA to transfer their MPF?

No. If employees are satisfied with the scheme selected by their employers (Original Scheme), they do not need to transfer their MPF. They may consider retaining the MPF in the Original Scheme. It is important to note that transferring MPF may not necessarily result in higher investment returns.

 

Employees should note that after the trustee of the Original Scheme has redeemed the funds and before the trustee of the scheme of their own choice (New Scheme) has subscribed to 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, the 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. Be mindful of this risk before making a transfer.

2. Can employees transfer their MPF more than once a year?

 The MPF derived from employee mandatory contributions can be transferred only once every year (i.e. the period from 1 January to 31 December in any given year).


The MPF derived from mandatory contributions relating to former employment or self-employment which have been transferred to their contribution account can be transferred any time on a lump-sum basis.


3. If an employee has not exercised the transfer right under ECA this year, can that right be accumulated and carried forward to the next year? In other words, in this case can the employee make a transfer twice next year?
No. Employees can only exercise their transfer right under ECA once every year. This right cannot be accumulated.
4. Can employees make a one-off request to the trustee of the scheme of their own choice (New Scheme) to set up an auto-transfer arrangement, so that the employee's portion of the MPF is transferred to the scheme of trustee of the New Scheme on a regular basis (say, once every year)?
No. Employees must submit an Employee Choice Arrangement (ECA) – Transfer Election Form (Form MPF (S) – P(P)) to the trustee of the New Scheme every time they wish to make a transfer.
5. Suppose an employee exercised the transfer right under ECA in January, and then changed job later in the same year. Is he or she allowed to transfer the employee's portion of contributions and investment returns accrued in the contribution account under his or her new employment in the same year?
Yes. Employees can transfer the MPF in their contribution accounts during current employment in a lump sum once every year. This right works on a per account basis. In other words, after changing jobs, employees can transfer the MPF in their new contribution account in the same year.
6. If employees work for more than one employer and thus have two or more contribution accounts, are they limited to making a transfer of their MPF only once a year?
Employees holding two or more contribution accounts can make a transfer of MPF in each account once a calendar year. The transfers do not need to be done at the same time.
7. After making a transfer, do employees need to wait 12 months before making another transfer?
No. Employees have the right to make a transfer of all the MPF derived from employee mandatory contributions at any time once every year (i.e. the period from 1 January to 31 December in any given year). In other words, if an employee has made a transfer during the current year, he or she can apply for another transfer at any time on or after 1 January in the following year.
8. If an employee has made a transfer of the MPF in his or her contribution account to the personal account of the scheme of their own choice, can he or she transfer the MPF in the personal account again to another scheme?
The MPF in a personal account can be transferred at any time to any MPF scheme. In other words, the MPF transferred from the contribution account to the personal account can be transferred again at any time to any MPF scheme.
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