The Financial Secretary and Secretary for Financial Services and the Treasury, Christopher Hui, announced on his blog “FinTech Insights” that the eMPF Platform, also known as “MPF Simple,” will be launched tomorrow. This platform aims to standardize, streamline, and automate the administrative work of the Mandatory Provident Fund (MPF) schemes currently managed by 12 trustees, transforming it into a central retirement protection administration platform.
According to the Treasury, for members of MPF schemes, the immediate benefit of the eMPF Platform is a significant reduction in administrative fees. The current estimate by the MPFA indicates that in the first two years of operation, administrative fees will decrease by approximately 36%. Over the first ten years of operation, administrative fees are expected to gradually decline to 20 to 25 basis points, resulting in cumulative cost savings of around HK$30 billion to HK$40 billion, equivalent to a reduction in administrative fees of 41% to 55%.
Christopher Hui mentioned that for every HK$100,000 of accrued benefits in an MPF account, the administrative fees are estimated to decrease from the current average annual payment of around HK$580 to HK$370 in the first two years after switching to the eMPF Platform. This reduction of HK$210 in fees will be reflected in the member’s MPF returns, with further expected reductions in administrative fees in the following years.
Moreover, after registering their accounts on the eMPF Platform, members and employers of MPF schemes will have access to view their accounts at any time, ensuring the protection of their interests. Additionally, trustees of MPF schemes will join the eMPF Platform based on the scale of their asset management in a phased approach following the principle of “small to large.”