Employees will be able to choose their own Mandatory Provident Fund service provider from as early as next year. Mandatory Provident Fund Schemes Authority chairwoman Anna Wu Hung-yuk said yesterday new laws are being drafted to increase the portability of MPF schemes, and a bill will be tabled in the Legislative Council this year.
The Employee Choice Arrangement will allow workers to transfer their contributions to an institution of their choosing.
Secretary for Financial Services and the Treasury Ceajer Chan Ka-keung said MPF annual returns for the past 10 years averaged about 5.5 percent, higher than inflation.
The portability scheme was originally due to be introduced this year but the government said regulations governing the scheme first have to be improved.
Wu said the authorities will reveal statistics on how different service providers perform to encourage competition.
Studies are also being carried out on how to make it easier for employees to manage their accounts.
Wu said holders may be able to access their accounts through the internet, and added there is room to further reduce management fees.
There have been concerns that portability may result in a violation of rules amid intense competition. STAFF REPORTER
The Standard, Hong Kong
17th March 2011