EPF plans ruling for new contributors
KUALA LUMPUR, June 18 — The Employees Provident Fund (EPF) is considering a new ruling that would allow new contributors to withdraw their savings after the age of 60 instead of the current 55.
The Star Online reported today that Deputy Finance Minister Datuk Ahmad Maslan said this was one of the proposals being mulled over in light of the minimum retirement age being increased to 60 come July 1.
Currently, contributors can still withdraw their EPF savings at 55, either as a lump sum, monthly amounts or a combination of both options.
This flexible withdrawal scheme would enable contributors to obtain a fixed and consistent income for a long period amidst worries that their money would be exhausted within a few years.
“However, no decision has been made on this proposal yet,” Ahmad said quoted as saying after a visit to the EPF yesterday.
The Star Online reported that EPF chief executive officer Datuk Shahril Ridza Ridzuan said any change would only take place after the EPF Act had been amended.
He said members could still contribute to the fund despite the retirement age being extended to 60.
Contributions for employees and employers remain at 11 per cent and 12 per cent (13 per cent for those earning less than RM5,000) until the employee reached 60, he added.
As of March 31 this year, EPF has 13.69 million members and 509,139 employers.
In 2011, 1.87 million members withdrew a total of RM33.19 billion from the fund.