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Comics to tell you more about the MPF

A brand new comic strip series, developed by popular cartoonist Maggiology is being launched by the Mandatory Provident Fund Schemes Authority (MPFA) today (26 September) to give information about MPF account management and MPF investments in a light-hearted manner.

The new comic series consists of three episodes, each introducing different MPF topics:
  1. Transaction of MPF funds
    • The comics explain that employers are required to submit both employee and employer contributions to their trustee for every wage period. The trustee then buys fund units according to each employee's choices. They also highlight the fact that the MPFA is a statutory body responsible for regulating and monitoring the MPF System, and for overseeing MPF trustees and other relevant service providers.
  2. "Default fund arrangement" of MPF schemes
    • They remind scheme members that when they enrol in an MPF scheme, they need to indicate their fund choices in the enrolment form. Otherwise, the trustee will allocate their contributions to the default fund under the respective scheme. The default fund can be any type of MPF fund and may not match the employee’s needs, including risk-tolerance level.
  3. "Forward pricing" mechanism of MPF funds
    • They point out that employees cannot specify the price of an MPF fund when buying or selling fund units, and explain that the execution price of funds is calculated on the basis of their net asset value after the market closes on the relevant trading day.
The MPFA encourages scheme members to pay close attention to their MPF, especially with the Employee Choice Arrangement commencing on 1 November. The new arrangement will give employees greater autonomy of choice by allowing them to transfer their accumulated employee mandatory contributions and investment returns (i.e. the accrued benefits) in their contribution account under current employment to another MPF trustee and scheme of their own choice. The MPFA hopes this lively and simple comic series will help employees get a better understanding of the operation of MPF funds.

The comic series is available at the MPFA MPF investment education thematic website. Enjoy the comics and share them with your friends on Facebook or Twitter.

- Ends -

26 September 2012


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