Fund interest rate

Each quarter, the Board of Fund reviews the interest rate applicable to the Additional Voluntary Contribution (AVC) Scheme and the Deferred Pension Scheme, taking into consideration the financial performance of our investments. The AVC scheme enables in-service members to make additional voluntary contributions to enhance their retirement or withdrawal benefits. The Deferred Pension Scheme preserves the retirement money left with EPPF by former in-service members, whom we refer to as deferred pensioners.

In-service members earn interest on the AVC Scheme, and deferred pensioners earn interest on the Deferred Pension Scheme.

When considering the impact of our interest rates, you should also consider the long-term nature of retirement funds and avoid looking at short-term rates only. There may be times when our interest rates are higher than those available in the open market, while at other times the rates may be lower. This is because our interest rates are based on past performance on a rolling four-year basis, so lagging interest rates in the market. Over the longer term, the result should be comparable. The following graphs show EPPF interest rates applied for each quarter from 2006:

Fund interest rate

Fund interest rate

Fund Interest Rates %