MPFA Chairman Mrs Ayesha Macpherson Lau published her blog post today (25 October), pointing out that the Mandatory Provident Fund (MPF) is set to undergo another major reform. The Government announced earlier in the Gazette that Phase One MPF Full Portability is scheduled for implementation on 21 December 2026. The implementation of Full Portability will improve scheme members’ control over their MPF and encourage employees to manage their retirement reserves more proactively.

Mrs Lau explained that to implement the new arrangement in a secure and an orderly manner, Full Portability will be implemented in two phases. Phase One, which will be launched in December this year, will cover about 1 million employees who entered the job market or changed jobs on or after 1 May 2025. As more graduates enter the workforce and employees change jobs, thus meeting the relevant eligibility criteria, the number of employees who can benefit from Phase One Full Portability will continue to increase.

In her blog, Mrs Lau reviewed the development from MPF semi-portability to Full Portability. She noted that MPFA introduced the Employee Choice Arrangement (semi-portability) in 2012, which enabled employees to transfer MPF derived from their employee mandatory contributions (EEMC) from the MPF scheme participated by their employers to an MPF scheme of their own choice once every calendar year. However, MPF derived from employer mandatory contributions (ERMC), which may be used to offset long service payments or severance payments, must remain in the MPF scheme participated by the employer. 

During the five-year period from 2021 to 2025, an average of $4.5 billion in MPF was transferred each year through semi-portability to MPF schemes chosen by employees, representing a 7% increase compared with the annual average of $4.2 billion in the previous five-year period from 2016 to 2020. As of September 2026, the cumulative number of transfers through semi-portability exceeded 1.1 million, involving a total amount of approximately $59 billion.

The Government’s abolition of MPF offsetting arrangement on 1 May 2025 was a conducive factor supporting the expansion from semi-portability to Full Portability, strengthening employees’ control over their MPF. In addition to transferring EEMC, they can transfer the entire amount of ERMC from a contribution account in an MPF scheme participated by the employer to a personal account in an MPF scheme of their choice once every calendar year through Full Portability. 

In other words, all mandatory contributions accumulated during an employee’s current employment can be transferred to an MPF scheme chosen by the employee. ERMC and EEMC transfers can also be made separately. The implementation of Full Portability will not change the existing arrangements for employer contributions. Employers will continue to make both employer and employee contributions for employees via the MPF schemes in which they participate. 

Phase Two Full Portability will cover employees who commenced their current employment before 1 May 2025. Since their ERMC may continue to be used for offsetting the portion of long service payments or severance payments for employment periods before 1 May 2025, additional legislative amendments will be required to ensure that the operational needs arising from the relevant statutory arrangements can be satisfied while enhancing employees’ control over their MPF. 

Mrs Lau pointed out that scheme members can initiate their transfers for 2026 calendar year from 21 to 31 December this year, and can also make transfers for 2027 calendar year starting 1 January next year. She reminded scheme members that MPF is a long-term investment. They should avoid transferring their MPF “for the sake of transfer” and making frequent MPF transfers. Before making full use of Full Portability, scheme members should carefully assess various factors and compare the fund choices, performance and fee levels of various MPF schemes. They should make prudent decisions that take into account their life stage, investment objectives and risk tolerance.

For the full version of the article, please visit the MPFA blog. The blog is available in Chinese only.

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25 October 2026