Full MPF portability 'can help drive down fees'

Lawmakers hailed on Monday an upcoming arrangement that allows employees to transfer not only their own mandatory provident fund contributions but also their employer’s to a scheme of their choice once every calendar year. Their remarks came as phase one of the MPF Full Portability scheme – which grants employees greater autonomy by allowing them to transfer accrued mandatory contributions by their employers to a scheme of their choice – is set to begin on December 21. Speaking on a RTHK radio programme, lawmaker Chau Siu-chung said he supported the arrangement as workers would be able to choose the MPF trustee they considered to be the best for them as well as foster more competition and help drive down administrative fees. He also said that the current eMPF platform would make the transfer process simpler and easier. Chau, also a non-executive director of the Mandatory Provident Fund Schemes Authority, noted that many workers remained unclear about what MPF “full portability” means and that public awareness in this regard needed to be strengthened. “I think public awareness right now is indeed not ideal – about 80 percent of people are basically not very clear about what full portability means, there is definitely a need to do...