The Mandatory Provident Fund Schemes Authority said on Tuesday that the eMPF Platform fee will be cut from the current 37 basis points of the assets under management of an MPF scheme to 29 bps, representing a fee reduction of 21.6 percent to directly benefit all MPF scheme members.
This adjustment, which has been approved by Financial Secretary Paul Chan Mo-po, will be effective starting from April 1.
Since the launch of eMPF to handle MPF scheme administration work, it has already reduced fees from an average of 58 bps to 37 bps, thanks to its standardized, streamlined, and automated design, along with the non-profit operational model of the eMPF Company, MPFA chairman Ayesha Macpherson Lau said.
With the fee charged by eMPF to be further lowered to 29 bps, it represents a reduction by half of the MPF scheme administration fee previously charged by trustees, she added.
“The digital usage rate of eMPF in the past 22 months has exceeded expectations,” Lau noted, adding that together with the more significant economies of scale and the growth in MPF assets, this has not only realized the policy intent of launching eMPF but also surpassed the initially projected level and pace of fee reduction.
The original estimate of HK$30 to HK$40 billion in administrative cost savings over 10 years of operation has now been increased to HK$50 billion and accelerated to within less than 10 years, she said.
Looking ahead, Lau said that the eMPF Company will intensify its efforts to boost the digital usage rate while maintaining strict cost control to create more room for further fee reduction to benefit scheme members.
She urged all eMPF users to manage their MPF digitally to enhance digitalization and achieve greater economies of scale. Scheme members who have not yet registered with eMPF are encouraged to do so as soon as possible to take advantage of digital MPF management.
