Info Center

The MPFA launches a one-month public consultation today (28 March) to gather public feedback on specific proposals of full portability of MPF benefits (full portability).

The Chief Executive announced the implementation of MPF full portability in the 2024 Policy Address and tasked the MPFA with working out specific proposals. The 2025-2026 Budget delivered by the Financial Secretary then highlighted that the MPFA would consult the public on specific proposals of full portability and submit recommendations to the Government thereafter.

The aim of full portability is to allow MPF scheme members to transfer more MPF benefits derived from mandatory contributions to an MPF scheme of their choice. This would encourage employees to proactively manage their MPF investments and foster market competition, thereby creating room for fee reductions. The launch of the eMPF Platform in June last year and the abolition of the MPF offsetting arrangement, which will take effect on 1 May 2025, are conducive to further reforms of the MPF System to achieve full portability. 

After a study on the subject, the MPFA has put forward the following proposals for implementing full portability and welcomes public feedback:

• For an employee who commences employment on or after 1 May 2025 (“new employee”), the employee can choose to transfer once a year the entire MPF benefits derived from employer mandatory contributions (ERMC) in respect of the current employment from the Contribution Account in an MPF Scheme participated by the employer to a Personal Account in an MPF scheme of the employee’s choice.  The proposed arrangement is the same as the current arrangement under the current Employee Choice Arrangement (ECA) (commonly called “semi-portability”);
  
  
• For an employee who commences employment before 1 May 2025 (“existing employee”), considering that the ERMC may still be used to offset the portion of severance payment/long service payment (SP/LSP) for the employment period before 1 May 2025, according to the Employment Ordinance, we propose setting up a new type of account, known as “designated ERMC Account”. This will allow an existing employee to transfer, once a year, the entire ERMC in respect of the current employment from the Contribution Account in an MPF Scheme participated by the employer to a “designated ERMC Account” in an MPF scheme of the employee’s choice. This arrangement would allow “existing employee” to exercise the full portability option while satisfying the operational needs of using ERMC to offset the portion of SP/LSP for the employment period before 1 May 2025 under the Employment Ordinance. 

As the proposals for “existing employee” and “new employee” involve different levels of legislative amendment and system support works, the proposal for “existing employee” may require a longerlead time to implement than the proposal for “new employee”. To realize the benefits of the full portability proposals as soon as possible, implementation of the full portability proposals by phases may be considered.

MPFA Managing Director Mr Cheng Yan-chee said, “The implementation of MPF full portability marks another milestone in the development of the MPF System. Once the proposed full portability is implemented, the proportion of vested MPF benefits that scheme members can freely transfer will increase from currently over 70% to nearly 100%. This will not only enhance the autonomy of the working population in MPF management, but also foster competition in the MPF market, driving MPF trustees to continue reducing fees, improving performance and enhancing service quality, thereby providing better retirement protection for the working population. We look forward to the public actively providing feedback to help us refine these proposals.”

The consultation paper is available on the MPFA website at https://www.mpfa.org.hk/en/info-centre/consultations-and-conclusions/open. Members of the public can also scan the QR code below to download the consultation paper. 

Members of the public can submit their feedback to the MPFA through the following channels by 28 April 2025: 

Electronic response form: 

Email:  Consultation@mpfa.org.hk 

Fax:  3183 0508

Mail address: 
Policy and Regulation Division
Mandatory Provident Fund Schemes Authority
Level 12, Tower 1, The Millennity
98 How Ming Street,Kwun Tong, Hong Kong
Attention: Consultation on Full Portability

– Ends – 

28 March 2025