EPF net contributions after withdrawals at RM15.23b

The EPF's total annual contributions in 2013 stood at RM50.58bil, exceeding the total annual amount withdrawn of RM35.35bil, resulting in net inflows of RM15.23 billion as at December 2013.

KUALA LUMPUR:  The Employees Provident Fund (EPF) recorded net contributions of RM15.23bil in the financial year ended Dec 31, 2013.

In its annual report 2013 tabled in Parliament on Thursday, total annual contributions were RM50.58bil, exceeding the RM35.35bil withdrawn and resulted in net inflows of RM15.23bil.

The retirement savings fund said contributors who reached 55 years old withdrew RM13.23bil during the year, which was 8.5% above the RM12.19bil in 2012.

Withdrawal for investment under the EPF's Members Investment Scheme (EPF-MIS) was second highest at RM7.85bil.

Other types of withdrawals also increased with Housing Withdrawal at RM4.95bil, Age 50 (RM3.84bil), Education (RM338.14mil) and Health (RM43.13mil).

EPF chairman Tan Sri Samsudin Osman said the ultimate objective was to ensure the members had sufficient savings when they retire.

"To ensure that members get the most out of their retirement savings, the full contribution rates of 11% and 12% have been maintained for ages between 55 and 60 as opposed to half contribution rates prior to 2013," he said.

The EPF made credible strides on the investment front in 2013 despite the bearish economies and global market conditions, he said.

"The EPF's robust yet prudent investment strategies had allowed it to declare a dividend rate of 6.35% for FY 2013, representing the biggest ever dividend payout of RM31.20bil to its members, up 13.66% over the RM27.45bil paid in 2012.

"The year also saw a 2.48% increase in membership to 13,922,194 from 13,585,007 the previous year, while the number of employers jumped from 502,863 in 2012 to 517,062," he said.

Samsudin said although the EPF recognised that the economic landscape would continue to present new challenges, it was confident its policy of prudent risk management and investment allocation strategies would help to maintain capital preservation while ensuring optimal return over a long term horizon.

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