ECP – plans to extend the scheme

The main proposal is to include all employees over the age of 55 in the scheme. Until now, these individuals could join the scheme by opting to enrol in ECP. Under the proposed changes, people over 55 will be covered by auto-enrolment, and so they will not have to enrol by themselves. Thus, there will be no division between auto-enrolled and auto-excluded employees and instead all employees will become ECP participants unless they voluntarily opt out.   

The second proposed change is to shorten the auto-enrolment deadline. As a reminder, currently, employees who have opted out of ECP have to decide every four years whether they still opt out or choose to opt in the scheme. Under the proposed changes, auto-enrolment takes place every two or three years. ​

Another proposal is to expand investment options for accumulated funds. Currently, ECP funds are invested in shares and bonds, with savers being able to choose whether they prefer to save more aggressively by investing most of their funds in shares, or more conservatively by investing their funds in safer financial instruments such as bonds. Following the changes, savers could be given the option to invest in infrastructure funds, private equity or REITs, which could boost not only diversification but also potential returns of ECP participants. 

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