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Employee Choice Arrangement

What is Employee Choice Arrangement?

Employee Choice Arrangement (“ECA”) aims to encourage more active management of MPF investment from employees. Upon implementation of ECA on November 1, 2012, an employee can elect to transfer the accrued benefits derived from the employee mandatory contributions made during the current employment to a Personal Account under an MPF trustee and scheme of his/her own choice in one lump sum once per calendar year. The former employment asset from the current contribution account can also be transferred to a personal account or a contribution account in one lump sum at any time.

 

However, accrued benefits derived from mandatory contributions made by an employer are non-transferable and must remain in the original scheme. Every calendar year thereafter, the employee can continue transferring accrued benefits derived from employee mandatory contributions from the past year into the same Personal Account or one held with another MPF trustee.

 

The MPF accrued benefits derived from the Personal Account are transferable to the employee's personal account or contribution account in one lump sum at any time.

Transferability of MPF accrued benefits

Transferability of MPF Assets upon implementation of ECA:

  Current Employment
(Contribution Account)
Former Employment
(Personal Account1)
Accrued Benefits derived from: Employer's Employee's Former Employment
Asset (transferred in
by employee)
Personal Account Asset2
Mandatory Contributions Not transferable2 Transferable to the
employee's personal
account once per calendar year3, 4
Transferable to the employee's personal account or contribution account at anytime in one
lump sum3, 4
Transferable to the employee's personal account or contribution account at anytime in one lump sum3, 4
Voluntary Contributions Transferability is subject to the governing rules of the original scheme2, 3, 4

 

  1. “Personal account” was called “preserved account” prior to the implementation of Employee Choice Arrangement on November 1, 2012.
  2. Transferability of the following accrued benefits remains unchanged after ECA implementation:
    - Contribution account: Derived from employer mandatory contributions and all voluntary contributions, and
    - Personal account asset.
  3. Accrued benefits will be transferred to the new scheme in a lump sum per sub-account (i.e., no partial transfer within sub-accounts). As the transfer takes time, the number of fund units shown in the employee's current MPF account on the date s/he decides to transfer may be different from that as of the date on which the fund units are redeemed. The original trustee will redeem all the fund units in the sub-account(s) on the date of redemption and transfer out the redeemed benefits.
  4. It may take 2-8 weeks to complete a transfer, depending on the nature of transfer and whether complete information is furnished.

Take control of your employee contribution

With ECA, employees can enjoy greater autonomy on their choice of MPF scheme and service provider. All transfer decisions are made by the employees alone. Employees do not need to inform their employers for such decisions or involve them in the process of transfer of MPF accrued benefits.

To learn more about Employee Choice Arrangement, please click here.


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Consolidate Your MPF Personal Accounts


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To manage your retirement investments more efficiently, you may consolidate your MPF accrued benefits from multiple to a single personal account. With Manulife Personal Account you may enjoy special privileged rates on our management fees by way of bonus unit rebate (terms and conditions apply)

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Warning: Investment involves risks. Please refer to the MPF Scheme Brochure for details including risk factors, fees and charges of the scheme.


Overview

Consolidate your MPF accrued benefits to a single personal account for more efficient MPF management.

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Warning: Investment involves risks. Please refer to the MPF Scheme Brochure for details including risk factors, fees and charges of the scheme.

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