In this Nov 29, 2000 photo, a mandatory provident fund (MPF) poster adorns the window of a bank in Hong Kong. (PHOTO / AFP)
HONG KONG – The full implementation of the eMPF Platform by 2025 remains unchanged despite the likely delay in its delivery by its contractor, Secretary for Labour and Welfare Chris Sun said Wednesday.
Answering a query at the Legislative Council, Sun said the contractor engaged to build the platform by the second quarter of 2025 had assessed that it is highly likely that the delivery of project will be delayed by eight months.
The HKSAR government and the Mandatory Provident Fund Authority will closely monitor the progress of the platform and implement the initiative as soon as possible
“Yet, the ultimate target of completing the onboarding of all MPF (Mandatory Provident Fund) schemes within 2025 and making the Platform fully functional in the same year remains unchanged,” Sun said.
"Once the eMPF Platform is ready for use for orderly migration of MPF schemes, we expect that the average MPF administration fee will reduce by around 30 percent during the first two years of operation," he said.
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Sun added that the administration fee will continue to drop steadily to about 20 to 25 bps after 10 years of operation, meaning a fee reduction of over 50 percent.
“The total cumulative cost savings in the first 10 years of operation of the eMPF Platform is estimated to be $30 billion to $40 billion for the benefit of scheme members,” Sun said.
Sun said the eMPF Platform can also provide centralized and reliable data that facilitate accurate calculation and processing of the government's MPF contributions for persons who are exempted from making MPF contributions due to low income.
The Hong Kong Special Administrative Region government has said that it will implement the initiative of paying MPF contributions for employees and self-employed persons who are exempted from making MPF contributions due to low income after the full operation of the eMPF Platform.
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The HKSAR government and the Mandatory Provident Fund Authority will closely monitor the progress of the platform and implement the initiative as soon as possible, Sun said.