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The Mandatory Provident Fund Schemes (Amendment) Bill 2009, which seeks to increase employees' control over their Mandatory Provident Fund (MPF) investments, will be gazetted tomorrow (April 24).
The bill proposes to amend the Mandatory Provident Fund Schemes Ordinance (Cap. 485) to allow employees to transfer accrued benefits derived from their employees' mandatory contributions during their current employment from a contribution account under a registered scheme on a lump-sum basis to another MPF scheme of their own choice at least once per calendar year.
A government spokesman said today (April 23), "The Bill will relax the portability restrictions on employees' mandatory contributions and allow employees access to a broader spectrum of MPF service providers, MPF schemes and funds for investment of mandatory contributions they have made during their current employment."
"Upon implementation, the proposal will result in around 60% of MPF benefits being portable among trustees and hence promote greater market competition. The proposal will also encourage more active management of MPF investments by the employees", he said.
The bill will propose other related amendments to the ordinance and the Mandatory Provident Fund Schemes (General) Regulation (Cap. 485A) to rename "preserved account" as "personal account" to instill a greater sense of ownership by the employees concerned and to suitably expand its definition to reflect the change in scope and nature of such accounts.
The bill will also provide for the establishment of a register by the Mandatory Provident Fund Schemes Authority to enable employees to ascertain the trustees with which they have personal accounts.
The Legislative Council Panel on Financial Affairs was briefed on the legislative proposal at its meetings last December and supported the introduction of the bill to give effect to the proposed amendments.
The bill, to be gazetted tomorrow, will be introduced into the Legislative Council on May 6.
Ends/Thursday, April 23, 2009
Issued at HKT 17:53
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