The eMPF Platform will replace separate systems currently in use by different operators. It will allow the 12 MPF providers, 361,000 employers and 4.75 million members to manage MPF assets worth HK$1.18 trillion (US$151.3 billion) through a single platform via their mobile phones or computers.
The eMPF will allow scheme members and employers to utilise the advantages of the platform “including digitalisation, automation and one-stop design, providing a brand-new experience in MPF management and driving significant fee reduction”, Ayesha Macpherson Lau, chairwoman of the Mandatory Provident Fund Schemes Authority (MPFA), said in a statement.
Lau said the platform will enhance operational efficiency and cut administration costs by HK$30 billion to HK$40 billion over a 10-year period.
Under the new arrangement, all MPF providers, also known as trustees, will have to use the eMPF Platform to run their schemes, but it is optional for both employers and employees.
Those who do not join the platform can still use traditional methods such as cheque payments or paper forms to manage their MPF, but Lau encouraged employers and members to use the digital platform because of its convenience.
“On average, it takes only five minutes for scheme members to complete the registration on the eMPF Platform and about 10 minutes for employers,” she said. “Our outreach service revealed that most employers are satisfied with the eMPF user experience.”
China Life Trustees will be the second provider to join the system. The trustee’s members can start eMPF registrations from July 12 and use the platform from July 29.
YF Life and China Life have a combined market share of 0.8 per cent and HK$9 billion in MPF assets under management, according to MPFA data.
“China Life Trustees in May invited 40 employers to trial the use of the eMPF Platform to make contributions,” China Life said in a reply to an inquiry from the Post. “Over 90 per cent of the employers are satisfied with the experience and all said they would consider using eMPF after it is launched.”
China Life will start cutting management fees for its MPF members from October 29, passing the savings in administration costs to its members.
The two MFP providers will be followed by Bank of Communications, which will notify its members and employers on June 28 before they can start using the eMPF platform from September 3.
The two largest players, Manulife and HSBC, will be the last to join in the second half of next year.
The MPFA is migrating the providers to the eMPF in ascending order of funds managed to ensure smooth implementation.
The eMPF Platform Company, a unit of the MPFA managing the digital platform, this month started offering free training to help all employers’ human resources departments prepare for the migration to the digital platform.
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