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Mandatory Provident Fund System

Topic Introduction

The Mandatory Provident Fund (MPF) System came into operation on 1 December 2000, as the second pillar of the multi-pronged retirement protection framework of Hong Kong, to regulate mandatory, privately-managed and fully-funded contribution schemes. Employees, employers and self-employed persons who are covered by the MPF System are each required to make regular mandatory contributions to an MPF scheme calculated at 5% of the relevant income of the employee / self-employed persons, subject to the statutory minimum and maximum relevant income levels which stand at $7,100 and $30,000 respectively for monthly paid employees.

Currently, there are 14 MPF trustees offering 27 MPF schemes to about 4.4 million scheme members and 300 000 participating employers. The aggregate net asset value of all MPF schemes exceeds $1,100 billion, with an annualized internal rate of return (net of fees) of 5% since the establishment of the MPF System 20 years ago.

Our Ongoing Work

Over the past years, the Government and the Mandatory Provident Fund Schemes Authority (“MPFA”) have implemented multi-faceted initiatives to enhance the MPF System by improving transparency and reducing fees of MPF funds. Further to the introduction of low fee funds in 2012, the fee-controlled Default Investment Strategy in 2017, and the one-stop MPF Fund Platform in 2019, the Government and the MPFA are preparing for the establishment of the eMPF Platform.

As a major reform initiative of the MPF system since its inception in 2000, the eMPF Platform is a common electronic platform that will streamline, standardize and automate the current MPF scheme administration processes through digital and innovative solutions, thereby enhancing operational efficiency and creating room for fee reduction. The eMPF Platform also has the benefits of bringing to users a quicker, simpler, better and predominantly paperless MPF experience, and will re-shape the operating landscape and ecosystem of the MPF System. The possible cost savings achievable by the eMPF Platform are estimated to be in a range of $30-$40 billion over a 10-year period from 2023 when the eMPF Platform starts to operate.

Our target is to complete the development work of the eMPF Platform by end-2022 for trustees to get onboard in batches. The eMPF Platform is expected to be fully functional in around 2025.

For More Information

For more information, please visit the following websites/linked documents:

Mandatory Provident Fund Schemes Authority

MPF Fund Platform

Papers on eMPF Platform submitted to the Panel on Financial Affairs of the Legislative Council
December 2018
December 2019
June 2020
January 2021

Recent Legislative Council Questions and Replies
6 January 2021
20 January 2021
27 January 2021
24 March 2021