Proposed resolution under the Mandatory Provident Fund Schemes Ordinance (section 46 of Cap. 485) - Mandatory Provident Fund Schemes (General) (Amendment) Regulation 2025

On September 24, 2025, LegCo approved a resolution to adopt the Mandatory Provident Fund Schemes (General) (Amendment) Regulation 2025 under the Mandatory Provident Fund Schemes Ordinance (section 46 of Cap. 485).

The resolution aims to amend the Mandatory Provident Fund Schemes Ordinance to implement the 'Full Portability' Phase One and Phase Two Proposals for Mandatory Provident Fund ("MPF") schemes. The current MPF system allows employers to contribute to employees' accounts but does not facilitate the transfer of accrued benefits across schemes.

The proposed amendments introduce a 'Full Portability' system, beginning with a phase for new employees and a subsequent phase for existing employees.

The subsidiary legislation is about implementing the 'Full Portability' system, which introduces the following changes:

- Phase One (for New Employees): New employees will have the ability to transfer their Employer's contributions ("ERMC") once a year to any MPF scheme of their choice.

- Phase Two (for Existing Employees): Existing employees will have a designated account to receive ERMC transfers, with these transfers still ring-fenced for potential MPF offsetting.

The legislative process includes amendments in 2025 for Phase One and remaining legislative changes in 2026 for Phase Two. The proposal aligns with the Basic Law and has no significant civil service, economic, or sustainability implications.

The MPFA conducted a public consultation in March and April 2025, with positive feedback from 90% of respondents, and generally supportive views from the LegCo Panel.

Upon LegCo approval, the MPFA will issue press releases and conduct education initiatives to help employees understand the new arrangements.