Scenarios & Impact Analyses
The DIS will affect new and existing scheme members in the different ways after implementation.
New scheme members
For new scheme members who enroll in an MPF scheme on or after 1 April 2017, they will have three options in respect of their MPF investment.
- Option 1 : Do not make any investment choice
If scheme members do not make any investment choice, their MPF benefits will be invested according to the DIS automatically.
- Option 2 : Proactively choose the DIS
Scheme members can proactively choose to invest according to the DIS, in which case their MPF benefits will be automatically invested in the CAF and/or the A65F depending on their age at the time.
- Option 3 : Invest by choosing any constituent funds
Scheme members can invest by choosing different constituent funds. Of course, scheme members will also be able to invest in the CAF and/or the A65F individually, but without de-risking mechanism automatically when they get older.
Existing scheme members
- Scenario 1
For existing members who joined an MPF scheme before 1 April 2017, all accrued benefits in their pre-existing account being invested in the existing default fund/arrangement and no investment instruction being given (known as “DIA account”).
- There are special rules and arrangements to be applied to determine whether accrued benefits in a DIA account will be transferred to the DIS.
- Relevant scheme members will receive a notice called the DIS Re-investment Notice explaining the impacts on members’ pre-existing account and giving members an opportunity to give a specified investment instruction to the Trustee before the accrued benefits are invested into the DIS.
(Note: Only apply to members who are under or becoming 60 years of age on 1 April 2017.)
- Scenario 2
For existing members who joined an MPF scheme before 1 April 2017, part or none of the accrued benefits in their pre-existing account being invested in the existing default fund/arrangement, and Trustee has not received any specific investment instructions from the members.
- Unless the Trustee has received the specific investment instructions from the members, otherwise members’ accrued benefits will be invested in the same manner as accrued benefits were invested immediately as at 31 March 2017.
- Relevant members’ future contributions and accrued benefits transferred from another scheme which contributed on or after 1 April 2017 will be invested in the DIS, until the Trustee has received specific investment instructions from scheme members.
- Scenario 3
For existing members who joined an MPF scheme before 1 April 2017 and have made the valid investment instruction.
- Scheme members may continue to invest in their existing funds.
- Scheme members may also, at any time, ask their trustees to switch funds for them so that their MPF accrued benefits and/or future contributions are invested according to the DIS.
Scheme members may make their investment choice at their own discretion at any time
Scheme members may make valid specific investment instruction through the following channels at any time：
- Interactive Voice Response System
- Smart phone or tablet apps
You should consider your own risk tolerance level and financial circumstances before making any investment choices. In your selection of funds, if you are in doubt as to whether a constituent fund is suitable for you (including whether it is consistent with your investment objectives), you should seek financial and/or professional advice and choose the fund(s) most suitable for you taking into account your circumstances.