New MPFA Head Prioritises Move Online

The new chair of the Mandatory Provident Fund Authority, Ayesha Macpherson Lau, says she wants its 'one stop shop' online project to be fully operational by 2025 - with roll-out starting in 2023. The move to the eMPF Platform should reduce fees for Hong Kong's compulsory pension account holders.

"One of the major public expectations is further fee reductions. Despite the best efforts of industry to reduce costs and fees, and with the average fee reduced from 2.1% in 2007 to the current average of 1.44%, the general consensus is that fees are still too high. A key reason for the high fees is the high cost of administration," said Lau, who was speaking on RTHK's Letter to Hong Kong radio programme.

PCCW Solutions won a tender in January to design and build the site. But eMPF Platform Company, a wholly-owned subsidiary of the MPFA, will operate the platform.

Lau also said improving retirement protection for those on low pay was a priority.

"Since assuming my new role, I have taken the initiative to meet with representatives from the labour unions to listen to their opinions on how MPF can be improved to strengthen retirement protection for grassroots workers, she said.

"The MPF account balances will be the most important retirement savings for low-income workers. I have assured them that when major policy decisions are made, I will do my best to protect workers’ interests."

The MPF system, which came into being on December 1 2000, is now in its twentieth year. Lau said its annualised net return was 5%, compared to an inflation rate of 1.8% over the same period.