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The MPFA today (30 July) published its Annual Report 2022-23, covering the MPFA's work in the year, the latest developments and strategic direction of the MPF System, and its financial report. 

MPFA Chairman Mrs Ayesha Macpherson Lau said in the annual report, “MPFA colleagues have always striven to adhere to the people-based principle, putting scheme members’ interests first. When formulating and implementing policies, the impact on scheme members would be the most important consideration. In order to respond to people’s aspirations for better retirement protection, the MPFA has pursued continual reforms, including improving the investment framework and reducing fee levels, so that the MPF System can better meet the expectations of scheme members and deliver better retirement outcomes for them.”

Mrs Lau pointed out that an assessment of the design of the MPF System, with reference to the Organisation for Economic Co-operation and Development (OECD)’s Recommendation for the Good Design of Defined Contribution Pension Plans, reconfirms the appropriateness of key design aspects of the MPF System, showing that its design excels in many ways by international standards. With a view to further refining the MPF System, Mrs Lau and MPFA colleagues attended 150 sessions of engagement activities with various stakeholder groups in the year under review to spread MPF messages and listen to their views. 

The annual report also highlights the progress of the eMPF Platform project. “As an innovative project of a centralized digital platform covering all participants in the MPF System and all administration functions, the eMPF Platform project has attracted great international interest,” said Mrs Lau. “The MPFA has been invited by the OECD and the International Organisation of Pension Supervisors to share the development of the eMPF Platform project at their meetings. This gives us further impetus to make the project a Hong Kong success story.”

Some key highlights of the MPF System in the 2022-23 annual report are as follows: 

• As at the end of March 2023, total MPF assets amounted to $1.11 trillion, $851 billion (77%) of which was net contributions, while $258 billion was net investment returns. 
• As at the end of March 2023, 2.9 million MPF accounts (26.8% of the total 10.9 million MPF accounts) had invested according to the default investment strategy (DIS) or in the constituent funds of the DIS, with total assets of $89.44 billion (8.1% of the total net asset value of the MPF System).
• As at the end of March 2023, there were 68 000 tax-deductible voluntary contribution (TVC) accounts with a total contribution amount of $8.59 billion. 
• The MPFA inspected 929 employment establishments, issued 346 700 payment notices in respect of MPF default contributions, and successfully recovered a total of $145 million in default contributions for 96 600 employees. 
• As at 31 March 2023, the average fund expense ratio (FER) was 1.33%, a reduction of 37% from 2.1% in 2007, when the FER was first introduced.
• As at the end of March 2023, the MPFA and its wholly-owned subsidiary eMPF Platform Company Limited had a total of 567 employees, and a turnover rate of 18.4%.
  
   

Meanwhile, the MPFA has produced an innovative short video, featuring Mrs Lau, and Mr Cheng Yan-chee, Managing Director of MPFA, interacting with chatbot of the MPFA website, Jack, the MPFA ambassador. The video reviews, in an innovative manner, the MPFA’s work in scheme member protection, eMPF Platform development and stakeholder engagement over the past year. The video and the MPFA’s Annual Report 2022-23 are available on the MPFA website. 

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30 July 2023