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The Mandatory Provident Fund Schemes Authority (MPFA) today (May 19) released a Consultation Paper on Proposals to Improve the Content of Annual Benefit Statements, and invited views from the public on the proposals.
The paper aims to provide scheme members with clearer information to help them better understand the details of their accounts and better manage their MPF affairs. The consultation period will end on August 18, 2006.
An MPFA spokesperson said that the Authority issued the Code of Disclosure for MPF Funds in June 2004 to enhance disclosure of MPF fund information in providing scheme members with easier-to-understand information on the MPF funds so that they could make more effective MPF investment decisions. The Code is the first phase of the project to improve the quality of the information that is disclosed to members of MPF schemes. Improvement to annual benefit statements is the second phase of the project.
The spokesman said: "After consultation with the MPF industry, labour unions, the Consumer Council and academics, and making reference to overseas experience, including the Organisation for Economic Co-operation and Development's Recommendations on Core Principles of Occupational Pension Regulation, the Authority has developed proposals in the Consultation Paper. These require annual benefit statements to provide the following information:
* details about contributions and transfers of assets;
* details about fund transactions;
* information on investment performance of individual member accounts;
* standardised terms and the flow of calculation for key summary figures; and
* a cautionary statement about exit values at withdrawal.
"MPFA calls on members of the public to comment on the Consultation Paper before the end of the consultation period August 18. Submissions may be sent by mail to the Investment Regulation Department, Mandatory Provident Fund Schemes Authority, 21/F, One International Finance Centre, 1 Harbour View Street, Central; by fax to (852) 2259 8331; or by email to winniechan@mpfa.org.hk."
Copies of the Consultation Paper are available at the Public Enquiry Service Centres of the Home Affairs Department and the MPFA office at 5/F, One International Finance Centre, 1 Harbour View Street, Central. The Consultation Paper can also be downloaded from the Authority's website at http://www.mpfahk.org.
The spokesperson said that upon completion of the consultation exercise, the Authority would collate and consider the comments received before finalising the proposals and the implementation timeline.
Ends/Friday, May 19, 2006
Issued at HKT 18:07
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