KUALA LUMPUR: The Employees Provident Fund (EPF) Board unveiled several key initiatives including an option for members to pick Amanah Raya Bhd (ARB) as the nominee/administrator or trustee to their EPF savings with effect from Jan 1, 2018.
The retirement fund said on Thursday the appointment of ARB would enable faster and equitable distribution of the members' savings to the next-of-kin, upon the members' demise.
“This new option is in addition to members' existing rights to appoint any individual persons as nominees,” it said.
The EPF also enhanced and simplified the Age 55 and Age 60 withdrawal policies so that members could make partial withdrawals of any amount at any time. The current policy only allows withdrawals of a minimum of RM2,000 once every 30 days.
In addition, 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.
The flexible withdrawal policy, which allows members to withdraw any amount at any time for partial withdrawals, has b3en 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.
The extension of the death benefits of RM2,500 claimable if a member dies before 55 will be extended until age 60.
The chief executive officer of EPF, Datuk Shahril Ridza Rizuan said these were the four enhancements to the its scheme and policies.
“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,” he said.
Already a subscriber? Log in
The Star Festive Promo: Get 35% OFF Digital Access
Cancel anytime. Ad-free. Unlimited access with perks.
