Switching between MPF Schemes/Constituent Funds 強積金計劃／成分基金的轉換

Fund Choices and Scheme Transfers 成分基金選擇與計劃轉移的分別

First identify whether the change concerns fund choices or the scheme holding the accrued benefits. Switching constituent funds within an MPF scheme leaves the member in that scheme; moving accrued benefits to another MPF scheme is a transfer between schemes.

Members may invest their contributions in any constituent funds offered by their participating scheme and must be allowed to change their fund choices at least once a year. This is a minimum requirement, rather than a limit of one switch annually; it also does not give direct access to funds in other schemes. [MPFA: Study Notes, Tenth Edition, section 5.9](https://www.mpfa.org.hk/en/-/media/files/supervision/mpf-intermediaries/registration-requirements/study_notes_10th_v1_eng.pdf)

Employer Scheme Changes and Business Ownership Changes 僱主轉換計劃及業務擁有權變更

An employer may choose to join another MPF scheme and transfer its employees’ accrued benefits to that scheme. This changes the employer’s participating scheme and is distinct from an individual member changing fund choices within a scheme.

When business ownership changes, the new employer may also elect to join another scheme by transferring employees’ accrued benefits, provided it both recognises their length of employment with the previous employer and assumes the previous employer’s liability for their long service payment or severance payment. Recognising service without assuming that liability is insufficient.

Transfer Choices on Leaving and During Employment 離職與在職僱員的轉移選擇

On leaving employment, an employee may keep accrued benefits in the existing scheme, transfer them to an MPF scheme of their own choice, or transfer them to the new employer’s MPF scheme. Changing jobs therefore does not require a transfer to the new employer’s scheme.

During current employment, the Employee Choice Arrangement allows an employee, at least once per calendar year, to transfer accrued benefits derived from employee mandatory contributions from the relevant employer’s chosen scheme to an MPF scheme of the employee’s choice. This right concerns benefits from employee mandatory contributions and does not itself authorise a transfer of benefits from the current employer’s mandatory contributions.

Distinguish the two minimum frequencies: fund choices may be changed at least once a year, while the Employee Choice Arrangement provides transfers at least once per calendar year. Also establish whether employment has ended before deciding which transfer choices apply.

Transfer Charges and Necessary Transaction Costs 轉移收費及必需交易費用

Section 34(1) of the Mandatory Provident Fund Schemes (General) Regulation restricts charges for transferring accrued benefits. Whatever the transfer’s frequency or type, transfer fees and financial penalties must not be charged to members or deducted from their accounts, except qualifying necessary transaction costs. [MPFA: Fees of the DIS](https://www.mpfa.org.hk/en/info-centre/faq/mpf-investment/default-investment-strategy)

Check the purpose, likelihood and recipient of the costs: they must concern investment sales and purchases needed to complete the transfer, have arisen or be reasonably likely to arise, and be payable to someone other than the approved trustee. Calling a charge an administration fee, or pointing to frequent transfers, does not justify an extra member charge.