Is MPF purely an employee benefit? AIA MPF has a different view

When talking about MPF, many employers think that it is just an employee benefit. However, this is only one side of the coin. MPF is not simply an employee benefit, but rather something that can be leveraged by HR to add significant value to their organisation. Stephen Fung, Chief Executive Officer, AIA MPF shares his views and advice to HR.

MPF as a value driver for organisations

Most organisations are currently facing challenges in how to increase staff engagement and retain key talent. Different methods are used, but few might have considered how to best leverage MPF to assist with staff retention.

Stephen Fung, Chief Executive Officer, AIA MPF commented, “Many employers are under the impression that MPF is simply a ‘mandatory’ obligation that they have to fulfil. In fact, MPF can be leveraged to help an organisation ’differentiate’ itself and retain top talent—bringing significant value to the company.”

In Hong Kong, an increasing number of corporations provide more than the 5% mandatory contributions to their employees. However, according to the MPFA’s statistics, these kinds of top-up contributions or Voluntary Contributions (VC) only accounted for around HK$2.3 billion, equivalent to just 13% of the total MPF contributions received in Q1 2016. In fact, in the eyes of employees, VC are seen as an additional benefit and provide a tangible way for employers to show their appreciation of their employees hard work. The AIA MPF Desired Retirement Survey, conducted in 2015, found that about 70% of employees believed their sense of belonging to their company would increase if their employer made VC into their MPF account—clearly demonstrating their support for VC.

Stephen Fung, Chief Executive Officer, AIA MPF

Fung pointed out, “Many HR may not truly recognise how to leverage the power of MPF. Providing good employee welfare in the form of VC can dramatically increase employee engagement and loyalty. In turn, employee engagement also helps facilitate talent acquisition and retention. Enhancing employees’ benefits by offering them VC has proven a highly effective means for employers to win the hearts and minds of their employees.”

To retain talent, employers can further consider applying different contribution rates to different banding of staff. It is a common practice for organisations to offer higher contribution rates to staff  members with longer tenure.

The HKSAR Government also encourages companies to make additional contributions on top of the mandatory 5% to their employees. Both mandatory and VC made by an employer are tax deductible under Profits Tax to the extent that they do not exceed 15% of the employee's yearly emolument—one more incentive to help employers take the leap.

Keeping things simple 

MPF may involve complicated administrative procedures requiring tremendous time and effort from HR departments, however, there are many ways that MPF providers can help to lessen the burden of HR. Fung explained, “MPF providers should see HR as their partners, and should support them by offering a variety of convenient tools and a wide range of member services to lessen their administrative burden.”

Taking AIA MPF as an example, the company has launched a newly-designed corporate website to help HR and employees retrieve important information easily—the site has an easy-to-navigate layout, comprising three different sections for employer, employee and self-employed clients to cater for their needs. The new website is mobile responsive and uses clear and simple language so both HR and employees can access information easily round the clock in any location.

The Enjoylife mini-site presents retirement planning advice in a lively and interactive way. 

Moreover, to make things even easier for HR, AIA MPF has also started revamping its administrative forms to help streamline the whole operating procedure. User-friendly E-service platforms provide HR with easy access to submit MPF contribution data and e-statements—to keep track of their MPF accounts. Communication materials have also been simplified, helping employees better understand the MPF scheme and select MPF funds that best suit their investment needs. As employees enjoy an efficient and user-friendly experience, this leads to less enquiries through HR and so further reduces their administrative burden.

Employers can get important MPF and retirement information easily by visiting AIA MPF’s newly-designed corporate website.

User-friendly software eases HR burden

One of the heaviest burdens to HR in many SMEs is handling the monthly payroll and MPF contributions for employees. To support them, AIA MPF has introduced proprietary HR Software: Payroll Easy, which allows HR to easily manage the company's payroll, MPF, taxation and employee records together in one place. The software can pre-fill necessary information to save HR's time, and also help HR to calculate contributions and track transactions.

To help employers fulfil their MPF obligations, AIA MPF also offers eight convenient ways for employers to settle MPF contributions including: autopay, cheque deposit machines, online banking, phone banking, 7-Eleven stores, PPS and ATMs.

Enhancing clarity via member education

User-friendly HR software helps employers manage their payroll and MPF contribution records easily.

When employees are empowered with a greater knowledge of MPF investments, this immediately lessens the need for HR to handle numerous enquiries around the MPF. To help meet this goal, in 2015 AIA MPF introduced the Enjoylife mini-site to help educate the public about MPF and retirement planning by providing professional retirement planning advice in a lively and interactive way through the use of videos, comics and games. AIA MPF’s new corporate website also features a ‘Knowledge and Insight’ section providing tips on managing and investing in MPF funds for employee reference.

AIA MPF also supports HR by offering a wide range of member services and supplementary communication tools such as seminars and briefing sessions for members, as well as regular newsletters for both employers and employees.

Dedicated care team for special-needs clients

AIA MPF is the first among top 5 MPF providers who has dedicated sign language proficient staff to serve hearing-impaired members.

Many companies in Hong Kong employ differently-abled staff—looking after their needs is also an important consideration for HR. Fung explained, “Members with special needs need special care, however, they are sometimes offered little support in managing their MPF. We believe everyone deserves a well-planned retirement regardless of their physical or mental ability. As a responsible MPF provider, we are committed to helping and supporting members with special needs in managing their MPF.”

One example of putting this into practice has been AIA MPF’s decision to assign a dedicated team including a Customer Service Officer who is hearing impaired and sign language proficient, to help hearing-impaired customers manage their MPF. AIA MPF is the first among top 5 MPF providers who has dedicated sign language proficient staff to serve hearing-impaired members.

The organisation has also enhanced its website's accessibility to cater to visually impaired users. Its customer service centre is also equipped with special equipments including a text-to-speech screen reader for the visually-impaired—to help further cater for the needs of members with special needs.

Fung concluded, “Taking care of members with special needs provides further help to our corporate members in being socially responsible.  This is also a way in which we can demonstrate our own care and support of people with special needs throughout society.”