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The Employees Provident Fund (EPF) of Malaysia has announced four enhancements to its policies which will take effect on 1 January 2018.
At a media briefing on 14 December, EPF chief executive officer Datuk Shahril Ridza Ridzuan said, “The EPF anticipates a majority of our members will be facing increasing challenges in preparing for their retirement with the dramatic demographic shift facing both Malaysia and the world, as well as the advent of the next industrial revolution. Therefore, these enhancements are to keep pace with changes in members’ needs and expectations.”
The four initiatives that will take effect on 1 January 2018 are given below.
1. Age 55 and age 60 withdrawal policies have been simplified
The withdrawal policies for age 55 and age 60 have been enhanced to enable members make partial withdrawals of any amount at any time, as opposed to the current policy that only allows withdrawals of a minimum of RM2,000 once every 30 days. Members who choose to make monthly withdrawals will be able to withdraw from as low as RM100 per month, as opposed to RM250 in the current policy.
To help members decide on the optimum withdrawal amount and frequency, they are urged to take advantage of EPF’s Retirement Advisory Services provided for free at its 18 branches nationwide.
2. Flexible withdrawal policy extended from age 75 to age 100
The flexible withdrawal policy, which allows members to withdraw any amount at any time for partial withdrawals, has been extended up to age 100 from the current age cap of 75 years old.
Members may also opt to make a combination of monthly and partial withdrawals. This enhancement is in line with the extension of dividend payment from age 75 to 100.
3. Death benefit extended from age 55 to age 60
Currently, the death benefit of RM2,500 is claimable if the member dies before age 55. This will be extended until age 60, in line with the national retirement age at 60 years old.
4. Amanah Raya Berhad can be appointed as nominee/administrator trustee
Members will have the option to appoint Amanah Raya Berhad (ARB) as the nominee/administrator or trustee to their EPF savings, to facilitate faster distribution of their savings to next-of-kin, upon members’ demise.
This would be especially beneficial for members with children below 18 years old. This new option is in addition to members’ existing right to appoint any individual persons as nominees.