Around 1m workers to benefit from MPF Full Portability

Approximately one million workers will benefit from a new arrangement allowing them to transfer both their own and their employer's mandatory pension contributions to the MPF scheme of their choice, once per year, according to the Mandatory Provident Fund Schemes Authority (MPFA). The full portability scheme will commence on December 21, 2025.

Workers who joined the workforce or changed jobs on or after May 1, 2025, the day the MPF offsetting arrangement was abolished, will be eligible for the first phase of the scheme. MPFA chairman Ayesha Lau stated that the scheme would enhance individuals' control over their MPF portfolios and encourage proactive management of retirement reserves.

She anticipates the number of beneficiaries to increase as more graduates enter the workforce and employees change jobs. Workers who began their current jobs before May 1, 2025, may require additional legislative amendments to balance operational needs and increased employee control due to their employer's mandatory contributions potentially being used to offset long service payments or severance payments.

Transfers for the 2026 calendar year will be available from December 21 to 31, while transfers for 2027 will begin on January 1. The new scheme will not alter existing employer arrangements, as they will continue to make contributions through the MPF schemes they participate in. Lau cautioned workers to view the MPF as a long-term investment and discourage frequent transfers or scheme switching for no reason.