Hong Kong pension scheme going digital will save members US$5 billion in fees over 10 years
- Hong Kong’s lawmakers last month approved legislation for the city to establish an online centralised platform called eMPF
- The digital platform will cut down the use of paper and save costs for the scheme’s 4.5 million members
The switch to a digital platform for Hong Kong’s compulsory retirement scheme will save the 4.5 million members as much as HK$40 billion (US$5.14 billion) over 10 years, according to the head of the pension regulator.
The project, which will cost taxpayers HK$4.9 billion, is expected to be completed by the end of next year.
“The eMPF platform will make Hong Kong one of the first markets worldwide to have a single digital platform to manage all scheme administration procedures of the privately managed pension scheme,” Ayesha Macpherson Lau, chairwoman of the Mandatory Provident Fund Authority, said in an interview.
The legislation has an important provision, which requires all trustees to directly pass on any costs saved from using the eMPF platform to scheme members, Lau said, adding that members will save up to 55 per cent in administration fees.
