How can employers help employees be engaged in and take ownership of their retirement planning? Employee communications and retirement education play critical roles.
The Mercer 2016 Hong Kong Defined Contribution Scheme Survey covers a broad spectrum of industries with responses from over 130 companies. The survey was designed to look at scheme design, investment management, provider services and fees, and scheme governance of defined contribution schemes available in Hong Kong, covering both the Mandatory Provident Fund (MPF) and Occupational Retirement Schemes Ordinance (ORSO) schemes.
The survey indicated:
- The number of employers who are not satisfied with their MPF providers has been increasing over the past few years1.
- Fee reduction alone is insufficient to increase members’ engagement and satisfaction.
- Employers are concerned with investment performance and employee communication.
To stay competitive, periodically review your providers to ensure that you are getting the best value and services that the market has to offer. In addition, employee communications and retirement education are critical for keeping your employees engaged and encouraging a stronger ownership of employees’ retirement planning.
 The average Fund Expense Ratio (FER) in the MPF market decreased from 1.72% in 2013 to 1.57% in 2016 http://www.mpfa.org.hk/eng/information_centre/press_releases/4971_record.jsp and http://www.mpfa.org.hk/eng/main/speeches/files/2016-09-28-PPT-e-ED(S).pdf, slide 9.