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The Mandatory Provident Fund Schemes Authority (MPFA) today (11 August 2006) reminded the public that the Consultation on Proposals to Improve the Content of Annual Benefit Statements will close on 18 August 2006. The Authority called on members of the public to express their views on proposals put forward in the document, which aims at providing scheme members with better and clearer information to help them better understand the details of their accounts and better manage their MPF affairs.

An MPFA spokesperson said that the Authority issued the Code of Disclosure for MPF Funds in June 2004 to enhance disclosure of MPF fund information in providing scheme members with clearer and easier-to-understand information on the MPF funds so that they could make more effective MPF investment decisions. The Code is the first phase of the project to improve the quality of the information that is disclosed to members of MPF schemes. Improvement to annual benefit statements is the second phase of the project.

After consultation with the MPF industry, labour unions, the Consumer Council and academics, and making reference to overseas experience, including the Organisation for Economic Co-operation and Development’s Recommendations on Core Principles of Occupational Pension Regulation, the Authority had developed proposals in the Consultation Paper and published on 19 May 2006. Proposals in the Consultation Paper require annual benefit statements to provide the following information:

-details on contributions and transfers of asset;
-details on fund transactions;
-information about investment performance of individual member accounts;
-standardised terms and the flow of calculation for key summary figures; and
-a caution statement about exit values at withdrawal.

The spokesperson said,"Members of the public, who wish to express their comments on the Consultation Paper before the end of the consultation period on 18 August 2006, can send their submissions by mail to Investment Regulation Department, Mandatory Provident Fund Schemes Authority, 21/F, One International Finance Centre, 1 Harbour View Street, Central; or by fax to (852) 2259 8331; or by e-mail to winniechan@mpfa.org.hk."

Copies of the Consultation Paper are available at the Public Enquiry Service Centres of the Home Affairs Department and the MPFA office at 5/F, One International Finance Centre, 1 Harbour View Street, Central. The Consultation Paper can also be downloaded from the Authority's website.

The spokesperson said that upon the completion of the consultation exercise, the Authority will collate and consider the comments received before finalizing the proposals and the implementation timeline.

END/Friday, 11 August 2006