EPF dividend beyond age 75
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See text below:
Clarification On EPF Dividend Payments From Age 75 To 100 Years
The Employees Provident Fund (EPF) wishes to clarify on the EPF Enhancement Initiative 3 pertaining to the extension of dividend payments from the current age of 75 to 100 years old as announced on Monday. This initiative only applies to members who voluntarily decide to keep their savings with the EPF post full withdrawal age.
Members who wish to maintain their savings in the EPF will continue to receive dividends up to the age of 100 years old and may withdraw them at any point in time. Subsequent to 100 years old, any unclaimed savings will be transferred to Registrar of Unclaimed Monies.
We emphasise that this proposal is not linked to the options to align the full withdrawal age with the minimum retirement age of 60 years, of which the first option is to extend the full withdrawal age from 55 to 60 years on a staggered basis over 15 years. The second option maintains the age 55 withdrawal for existing savings and introduces a new age 60 withdrawal for contributions of those working past the age of 55.
Issued by
Corporate Affairs Department
Employees Provident Fund
Date: 22 April 2015
http://www.kwsp.gov.my/portal/documents/10180/4230235/EPF_CONTINUES_DIVIDEND_PAYMENTS_BEYOND_AGE_71_20062016.pdf
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1st Jan 2017 EPF: No Change To Age 55 Withdrawal, And Introducing Akaun Emas For Age 60 Withdrawal
News & Highlights
KUALA LUMPUR, 3 November 2016: The Employees Provident Fund (EPF) today announced that effective 1 January 2017, Akaun Emas will be introduced as a second retirement nest egg for members working beyond age 55. There is no change to the current Age 55 Withdrawal.
The Akaun Emas is one of the initiatives under the enhancement to the EPF schemes as set out under the EPF Act 1991 where all new contributions received after age 55 will be automatically parked under Akaun Emas and can only be withdrawn when members reach age 60. This is to ensure the sufficiency of members’ retirement savings upon reaching age 60.
EPF Chief Executive Officer Datuk Shahril Ridza Ridzuan said, “During the Members Consultation Exercise held in April last year, we proposed several enhancement initiatives to the current schemes, and chief among them was the introduction of the Akaun Emas.
“Considering the reality that the average Malaysian today is working beyond the age of 55 and the minimum retirement age of 60, the EPF decided to provide a second retirement nest egg via the Akaun Emas to secure members’ savings from age 55 to 60. The extra savings accumulated during this five-year period will go a long way in serving members’ needs when they retire.”
The EPF assures members that the current Age 55 Withdrawal will remain. All existing balances for members above age 55 will remain available for withdrawal. The Akaun Emas will not affect the existing scheme, where members have the option to make full or partial withdrawals upon reaching age 55. Members will also continue to earn dividends for their savings in both Akaun Emas and the balance of their savings in Akaun 55.
In addition to the Akaun Emas and Akaun 55 initiatives, the EPF is also extending the dividend payment limit to age 100 from the current age 75. This will benefit members who choose to maintain a portion of their savings with the EPF, allowing them to benefit from the compounding effect of receiving dividend until a full withdrawal is made.
Following the Members Consultation Exercise last year, a total of 94 per cent of respondents overwhelmingly agreed for the EPF to maintain the Age 55 Withdrawal, with new contributions from age 55 to 60 to be locked in until age 60, hence the introduction of Akaun Emas. The exercise also saw 61 per cent of respondents agreed that the dividend payments to be extended from the current age 75 to 100.
Several other enhancement initiatives were also introduced to the EPF schemes and policies such as changes to the nomination policies, increase in the Basic Savings quantum, pre-retirement withdrawals for non-Malaysian members, and enhancements of policy administration (please see Attachment 1). All these initiatives will take effect on 1 January 2017.
For more information on the enhancement initiatives, members can also refer to the Enhancement of EPF Scheme and Policy microsite via the EPF website at www.kwsp.gov.my or call the EPF Contact Management Centre at 03-89226000.
ATTACHMENT 1
SUMMARY OF ENHANCEMENT INITIATIVES TO EPF SCHEMES AND POLICIES ENHANCEMENT INITIATIVES
DESCRIPTION
1. Akaun 55 (Age 55 Withdrawal)
• Contributions from Account 1 and 2 will be transferred to Akaun 55 for members who have reached age 55 and above starting 1 January 2017.
• After the transfer to Akaun 55, any withdrawals can be made subject to current eligibility and procedures.
• After the transfer to Akaun 55, any withdrawals can be made subject to current eligibility and procedures.
2. Akaun Emas (Age 60 Withdrawal)
• Any contributions received after age 55 starting 1 January 2017 will be parked under the new Akaun Emas.
• No pre-retirement withdrawals from Akaun Emas.
• Accumulated contributions can only be withdrawn at age 60.
• Upon reaching age 60, balances in Akaun 55 and Akaun Emas will be combined for withdrawal.
• No pre-retirement withdrawals from Akaun Emas.
• Accumulated contributions can only be withdrawn at age 60.
• Upon reaching age 60, balances in Akaun 55 and Akaun Emas will be combined for withdrawal.
3. Dividend Payment and Unclaimed Savings
• Dividends will continue to be credited into members’ account until the savings are transferred to the Registrar of Unclaimed Monies after 100 years
• Members will continue to enjoy annual dividend up to age 100.
• Members will continue to enjoy annual dividend up to age 100.
4. Nomination
• Initial payment of Death Withdrawal has been increased from RM20,000 to 25,000 depending on balance of savings in the deceased members’ account.
• Witness no longer required for nominations.
• For Muslim members:
• Witness no longer required for nominations.
• For Muslim members:
o Clarifying the role of executor/administrator in nomination form
o Nomination will be revoked if withdrawal application is not made within one (1) year after member’s death
o Under-aged nominee can execute the responsibility of executor/administrator upon reaching 18 years old.
o Nomination will be revoked if withdrawal application is not made within one (1) year after member’s death
o Under-aged nominee can execute the responsibility of executor/administrator upon reaching 18 years old.
5. New Basic Savings Quantum
• The Basic Savings quantum will increase from current RM196,800 to RM228,000 to align with the revised minimum pension for public sector employees (RM820 to RM950 monthly)
• Eligibility to participate in the EPF Member Investment Scheme (EPF-MIS) has been increased from 20 per cent to 30 per cent of savings in excess of the Basic Savings quantum by age in Account 1.
• Eligibility to participate in the EPF Member Investment Scheme (EPF-MIS) has been increased from 20 per cent to 30 per cent of savings in excess of the Basic Savings quantum by age in Account 1.
6. Additional Withdrawal Options for Non-Malaysian Members
• The enhancement initiative enables non-Malaysian members to make additional withdrawals, subject to terms and conditions, as below:
o PRE-RETIREMENT WITHDRAWALS
- Age 50 Withdrawal
- Housing Withdrawal – Only for property purchased in Malaysia
- Education Withdrawal
- Health Withdrawal
- Housing Withdrawal – Only for property purchased in Malaysia
- Education Withdrawal
- Health Withdrawal
o FULL WITHDRAWAL
- Age 55 – Lump Sum
- Leaving Country
- Incapacitation
- Death
- Leaving Country
- Incapacitation
- Death
7. Order of Forfeiture
• Savings will not be protected under Section 51 in the event that a forfeiture order is issued by the court under the Anti-Money Laundering Act, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (Act 613) where members’ savings can be surrendered and transferred to the relevant government authorities.
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EPF - Benefits as an EPF Member
http://www.kwsp.gov.my/portal/en/members/member-responsibility/registration/benefits-as-an-epf-member
http://www.kwsp.gov.my/portal/en/members/member-responsibility/registration/benefits-as-an-epf-member
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