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The 4.75 million members of Hong Kong’s Mandatory Provident Fund (MPF) could save up to HK$50 billion (US$6.4 billion) in fees over a 10-year period after its electronic platform’s full implementation next year, according to the city’s retirement schemes regulator.
The Mandatory Provident Fund Schemes Authority (MPFA) revised its original estimate made a few years earlier of HK$30 billion to HK$40 billion in savings from fee reduction because the digital platform, called eMPF, worked better than expected, chairwoman Ayesha Macpherson Lau said in a media briefing on Thursday.
That revision came ahead of the final phase of onboarding by the retirement scheme’s four biggest trustees – AIA, Sun Life, Manulife and HSBC – as they start migrating to the eMPF from this week until the end of the year.
“The eMPF has worked very well since its launch in the middle of last year, and usage of the platform has been better than expected,” Lau said. “I am very optimistic that the amount of savings from the reduction of fees would be higher than what we initially expected.”
Her assessment reflects the ambitious goal behind the eMPF, which stands as the most significant reform to the city’s 25-year-old compulsory retirement scheme. Launched in June last year, it was designed to serve as a centralised platform that would replace the separate systems used by the MPF’s 12 trustees.
The digital platform would enable the 12 MPF providers, the city’s 367,000 employers and 4.75 million members to manage assets worth HK$1.4 trillion through a single system that is accessible via smartphones, tablets or desktop computers.
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