Information Centre

There is a saying that goes, “If a craftsman wants to do a good job, he must first sharpen his tools.” To help MPF members manage their accounts, the MPFA has adopted a “three-step approach” to further enhance the transparency of MPF information and provide scheme members with the required information to make informed choices to better manage their MPF.

Step 1: The one-stop MPF Fund Platform
The MPFA launched the one-stop MPF Fund Platform in April last year. Like many travel sites which offer detailed comparisons, the platform enables scheme members to compare the fees and performance of different MPF funds by disclosing the three main components of the management fees. This allows employees to make informed choices in selecting high value-for-money funds that meet their personal needs. 

Step 2: A standard format to show account information
When an employee changes jobs, a new MPF personal account is created, and therefore many scheme members have more than one MPF account. As the information displayed in the Annual Benefit Statement (ABS) under different MPF schemes follows different layouts, scheme members may find it difficult to understand their account information and become less motivated to manage their MPF.  

At the end of 2019, the MPFA requested trustees to adopt a standardized template coupled with graphs to show the information on the ABS, and to present the same set of key member account information, such as account balance, net contributions and account gain/loss, on the Online Dashboard of the trustees’ platforms. The aim is to facilitate members’ understanding and cross-product comparisons.

Step 3: The new risk class function
It is crucial for scheme members to assess the risk of various MPF funds so that they can invest according to their personal circumstances and risk-tolerance level. The MPFA has required trustees to add the risk class on their fund fact sheets and their websites to serve as an additional reference for scheme members. A seven-point risk classification scale has been adopted – the higher the number, the higher the risk. 

Scheme members should make use of these tools to effectively manage their MPF accounts for better retirement planning.