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Mandatory Provident Fund Schemes Authority (MPFA) Chairman Dr David Wong published his latest blog post on the MPFA website today (6 January). He compared the MPF System with defined benefit retirement plans of other countries, saying that the MPF contribution arrangements make the System more financially sustainable. The MPF System is especially suitable for Hong Kong, as it is a small and open economy facing the emerging problem of an aging population due to a low fertility rate and long life expectancy.

Dr Wong pointed out that operating an MPF Scheme involves a lot of procedures, most of which are handled by trustees exclusively for the MPF, including setting up MPF accounts for employees, managing monthly contributions from employers, and arranging contribution and fund switching according to employees’ investment instructions. Therefore, it is necessary to understand the duties of trustees when assessing the fees and not to directly compare the fees with those of retail funds.

For the full version of the article, please visit the MPFA blog (in Chinese only).

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6 January 2019