Information Centre

The MPF System marked its 20th anniversary on 1 December 2020. The original purpose of the MPF System was to help the workforce develop investment discipline by making regular contributions for investment, based on the concept of “dollar cost averaging”.  Despite encountering various challenges throughout the years, the resilience and sustainability of the MPF System stood the test of time.

Prior to the launch of the System, only about one third of the local work force participated in some form of retirement protection scheme. Today, more than 85% of the work force is covered by MPF or other retirement schemes. This coverage rate is among the highest in the world. The total assets of the MPF System started from scratch but have now grown to over one trillion dollars, with an annualized return of 3.9% as of end of October 2020, compared to an average inflation rate of 1.8% over the same period. This sizable sum represents an important retirement savings pool of our community with its ageing population.

For two decades, the MPFA has made continuing efforts to meet changing public expectations. Reform initiatives include regular reviews and adjustments of the minimum and maximum levels of relevant income for MPF contributions. The Employee Choice Arrangement, launched in 2012, aims to give employees greater freedom in choosing their trustees and managing their investments. The Default Investment Strategy, which was rolled out in 2017, made investment easier for people who need help in choosing the funds that are right for them. And to encourage people to save more for retirement, Tax Deductible Voluntary Contributions (TVC) was introduced last year.

As the MPF System moves into its third decade, the MPFA has embarked on the development of the eMPF Platform. This digital platform will streamline administrative processes, improve efficiency and reduce the overall costs of the MPF System. This project represents the most sweeping reform of the MPF System to date. The MPFA aims to finish building the Platform by end of 2022. It is expected to forge a new landscape for the MPF ecosystem, deepen market competition and ultimately bring about a better user experience with lower prices for the benefit of the scheme members.

The MPFA will continue to work hard for the retirement well-being of the working population and to accomplish its vision of building a retirement savings system that is valued by Hong Kong people.  To mark this important milestone, the MPFA held a webinar to review the major reforms of the MPF System in the past two decades and explore the way forward of this important pillar of the Hong Kong retirement protection system.  Besides, the MPFA has produced a video featuring interviews with former and incumbent MPFA Chairmen and Managing Directors to review the development of the MPF System over the years. Another promotion video and a series of real-life cases illustrating how the MPF provides basic retirement protection for the working population of Hong Kong were also launched.

For more details on the 20th anniversary activities and information, please visit the MPF System 20th Anniversary website (https://minisite.mpfa.org.hk/mpf20).

Video: Recounting 20 Years of MPF

Video series on real-life cases