Policy Address

191. Apart from obtaining a certain sum as compensation upon dismissal, dismissed employees will have their MPF fully protected upon the implementation of the proposal. Although expenditure by employers will increase, the “grandfathering” arrangement and the government subsidy will help mitigate the impact.

192. Following the launch of the Default Investment Strategy in April this year to address the concerns of “high fees” and “difficulty in making investment choices”, the next objective of the MPF Schemes Authority is to put in place an eMPF, a centralised electronic platform, to facilitate the standardisation, streamlining and automation of the MPF scheme administration, thereby further reducing costs and paving the way for “full portability” so employees will have full control over the investment strategy. This will promote market competition among trustees, and increase the prospect of fee reductions. The Government’s vision is “one member, one account”, so that each employee will pool all MPF accrued benefits into a single MPF account for more effective management of his/her retirement savings. The Government will render full support to these efforts.

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