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The Mandatory Provident Fund Schemes Authority (MPFA) reminds Mandatory Provident Fund (MPF) scheme members that starting from tomorrow (1 February 2016), members can enjoy more flexibility when managing their MPF benefits upon retirement or early retirement¹.
 
Scheme members who have reached the age of 65, or who have reached the age of 60 and have decided to early retire can choose to either withdraw their MPF benefits by instalments or withdraw all their MPF benefits in a lump sum, or retain all their MPF benefits in their accounts for continuous investment.
 
If members choose to withdraw their MPF benefits by instalments, they can submit their application any time, according to their personal needs. There is also no limit on the amount of each instalment or the number of withdrawals.
 
Trustees must not charge any fee, impose any penalty or make any deduction from the member’s account, other than necessary transaction costs², for the payment of accrued benefits in a lump sum or by instalments in any year for the first four instalments of that year. Members should pay attention to whether there will be extra fees charged if they intend to withdraw their MPF benefits by more than four instalments in a year. They are advised to contact their trustees for details.
 
As for the application procedure, scheme members who have multiple MPF accounts can choose a different withdrawal method for each account. They must, however, submit a separate application form for each account they hold. If they have more than one account under the same MPF scheme and choose the same withdrawal method for each account, they can simply submit one form to the relevant trustee, listing their different account numbers on the form. If they choose either different withdrawal methods or different withdraw amounts for each account under the same MPF scheme, they will have to submit a separate form for each account.
 
All applications should be submitted directly to the relevant trustees. In general, trustees are required to pay scheme members their MPF benefits and issue a benefit payment statement within 30 days of the date on which the members submit all the required documents.
 
If scheme members choose to retain all their MPF benefits in their account, no application is required. Their MPF benefits will continue to be invested in the fund(s) they have selected. Scheme members should also note that the value of their MPF assets remaining in their MPF accounts might change due to market fluctuations, and that their account will, as usual, be subject to management fees and other charges by the trustee.
 
The MPFA has launched a publicity campaign explaining the details of the new MPF withdrawal arrangement upon retirement, including TV and radio Announcements in the Public Interest (APIs) featuring the Old Master Q comics. The APIs are being broadcast on local TV and radio stations. Print advertisements have been placed in different newspapers, and there will also be online advertisements on social media platforms.
 
Also a flyer featuring the Old Master Q comics has been distributed to thousands of members aged 59 or above via trustees, introducing the three ways to handle MPF upon retirement or early retirement. A leaflet, which provides more details, has also been produced. Both publications are available on the MPFA website.