Three Steps to switch from one scheme to another
Civil Service Provident Fund (“CSPF”) Scheme member is allowed to switch from his/her existing Master Trust Scheme (MTS) (hereafter referred to as “Scheme A”) to another MTS (hereafter referred to as “Scheme B”) once within each calendar year.
Member who wishes to switch from Scheme A to Scheme B must at the same time transfer all his/her accrued CSPF benefits from Scheme A to Scheme B.
The process of scheme switching generally comprises three steps:
Step one: Select MTS
Select any one of the three MTSs appointed by Government in 2016 (i.e. BCT (MPF) Pro Choice, BOC-Prudential Easy-Choice Mandatory Fund Scheme and Sun Life Rainbow MPF Scheme).
According to the advice from the Mandatory Provident Fund Schemes Authority (“MPFA”), there are four major factors to consider when selecting MTSs:
| (i) | Products (scheme and fund) | Whether the fund choices available are adequate and meet your needs; features of the funds; risk level and past performance of the funds. |
| (ii) | Fees and charges | Compare fees and charges of funds of the same type. |
| (iii) | Services | The range and quality of services provided by the trustees. |
| (iv) | Personal factors | For examples, personal investment objectives; current stage of life (including years to retirement); risk tolerance level and other savings for retirement. |
For detailed information on MPFA’s advice, please refer to the following website:
https://minisite.mpfa.org.hk/mpfie/en/decision-points/choose-plan/
Step two: Submit completed form to your department
Complete the enrolment form of Scheme B and submit your request in writing to your departmental management. Specifically, for members transferring out of BOC-Prudential Easy-Choice, please submit your request together with a completed members’ termination form.
Step three: Check relevant documents once switching is completed
On completion of your transfer, you will receive a transfer statement and a transfer confirmation from your trustees. Please check these documents carefully to ensure that the account details and transferred amount are correct.
Points to Note
You should take note of the following risks before making any decision to switch from your existing Master Trust Scheme (“MTS”) to another MTS:
Beware of “sell low, buy high”
Due to the time required by relevant parties in making the necessary arrangements, normally a lead time of about two months should be allowed for completing the switching of scheme and transfer of accrued benefits, during which your accrued benefits will not be invested in any fund. There may be price fluctuations of the fund units during the interim period of transferring accrued benefits from one MTS to another, and there is a chance of “sell low, buy high” occurring.
Read carefully the terms and conditions of guaranteed funds
If you are currently investing in an MPF guaranteed fund and wish to transfer your accrued benefits from one MTS to another, you should be aware that a transfer of the accrued benefits out of that guaranteed fund may result in some or all of the guaranteed conditions not being satisfied, thus affecting your entitlement to the guarantee. You may check the offering documents of the MTS or consult the scheme trustee for details.
Should you have any enquiries about the above, please contact the Government members’ hotline of the relevant MTSs.