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The MPFA today (12 August) published its Annual Report 2020-21, covering the MPFA's work in the year under review, the latest developments and strategic direction of the MPF System, and the independent auditor’s report. Since the MPF System marked its 20th anniversary in the 2020-21 financial year, the report also highlighted the major initiatives adopted by the MPFA to improve the System during the past 20 years. 

Dr David Wong, former MPFA Chairman, whose six-year tenure ended in March this year, recounted in the annual report the major contributions of the MPF System to the Hong Kong economy and working population over the past two decades. Despite the challenges at different stages since its implementation, the MPF System has proved to be resilient with steady growth and has continued to improve on various fronts, Dr Wong added.

In the past two decades, various reform measures were implemented, including the employee choice arrangement, the default investment strategy (DIS), and tax-deductible voluntary contributions (TVC), to help scheme members build their MPF assets, continued Dr Wong. Meanwhile, the growing transparency of information on MPF schemes and funds, complemented by dedicated educational and publicity efforts about the MPF System and the features of different fund types, has helped employers and scheme members better understand their MPF rights and obligations and learn how to manage MPF matters. Looking ahead, the eMPF Platform under development is set to bring about a new MPF ecosystem, which will create greater room for fee reductions and better returns for scheme members.

As mentioned in the annual report, the development of the eMPF Platform has been progressing full steam ahead according to schedule, with the completion of the first-stage legislative amendments in July 2020, the award of the contract to design, build and operate the eMPF Platform in January 2021, and the establishment of eMPF Platform Company Limited in March. At present, the MPFA is supporting the Government in taking forward the second-stage legislative amendments, providing the legal basis for the designation of the eMPF Platform as the common gateway for the scheme administration processes in the MPF System.

The key highlights of the MPF System included in the 2020-21 annual report are as follows:

• As at the end of March 2021, total MPF assets amounted to $1,169.29 billion, comprising $745.5 billion (64%) of contributions and $423.79 billion (36%) of net investment returns. The annualized rate of net return of the MPF System since its inception was 4.9%, higher than the corresponding inflation rate of 1.8% over the same period.
• Over 53,000 TVC accounts were set up, with a total contribution amount of over $3.9 billion.
• Some 2.5 million MPF accounts (about 24% of the total) were invested in DIS constituent funds, amounting to $72.23 billion and accounting for over 6% of total MPF assets.
• In terms of protecting the interests of scheme members, the MPFA recovered almost $200 million in MPF default contributions on behalf of over 100,000 affected employees, a record high in the past decade.
• The MPFA inspected about 900 employment establishments, issued over 300,000 payment notices in respect of MPF default contributions, and investigated over 45,000 cases. In addition, over 600 summonses were issued to employers and directors or managers of limited companies for prosecution, and 40 financial penalty notices were issued to repeat defaulters.

The MPFA’s Annual Report 2020-21 is published in electronic format. Members of the public can download it from the MPFA website.

－Ends－

12 August 2021