Information Centre

When employees change jobs, the MPF in their contribution account established from their previous job would be automatically transferred to a personal account. Assuming that your career lasts for 30 to 40 years and you change jobs every three to five years, you may be holding a number of personal accounts. By consolidating your personal accounts into one, it will be much easier to manage your MPF. For example, you will be able to review your fund performance at just a glance. If you wish to switch to another MPF scheme offered by another trustee when you consolidate your personal accounts, you need to beware of the out-of-market period during the process.

The out-of-market period takes place during the transfer of an MPF scheme. The original trustee needs to sell your fund units in your old scheme before your new trustee can buy fund units in accordance with your fund choices. During this period which would last for one to two weeks, your MPF will not be invested in any MPF funds. As fund prices would be subject to market fluctuations during this time, you are exposed to the risk of “selling low and buying high”, with the price difference of the fund units between your old and new schemes.

If you are changing jobs, you can make reference to the MPFA’s Trustee Service Comparative Platform to compare the services offered by different trustees, before transferring your MPF from the contribution account under your old scheme to the new scheme enrolled by your new employer, or transferring your MPF from the contribution account under your old scheme to any other scheme (including the old scheme of your previous employer if you like). You can compare the fees and performance of all MPF funds on the MPFA’s MPF Fund Platform and make your investment decision according to your personal investment goals and risk-tolerance level. You should review the service and fund performance of your new trustee regularly after transferring your MPF to a new MPF scheme.

Similarly, employers should be aware of the risk related to the out-of-market period arising from switching MPF schemes. The MPFA encourages employers to discuss a potential switch with their employees to understand their needs before making the decision to change MPF schemes. When assessing the suitability of an MPF trustee, employers may also take into consideration the service scope and quality of the new scheme, including the range of products and how they meet the employees’ needs, and the fee levels.