PETALING JAYA: The Employees Provident Fund (EPF) Board said its review of withdrawal options is not due to funding constraints as it enjoys a healthy asset growth of RM20bil a year, board chairman Tan Sri Abdul Halim Ali said.
In a press statement yesterday, he said that in light of the mixed reaction to the proposed withdrawal options, EPF hoped that members and interested parties would remain open to the review.
“During the course of this review, concerns may be expressed by certain quarters that the review was driven by funding constraints.
“I wish to state that the EPF enjoys strong cash flow with contributions exceeding withdrawals by about RM10bil,” he said.
He said the fund’s size was in excess of RM219bil and more than half of it was liquid or near liquid.
Abdul Halim said the EPF, through its special sub-committee set up last November, was organising its first seminar on ageing and retirement issues next month to ensure the fund remains relevant to changing times.
He said the deliberations of the committee during the seminar would be presented to the board and the board might or might not agree with them.
“In respect of specific proposals, the EPF will solicit feedback from all interested parties. The final decision will rest with the Government,” he said.
“The EPF has a responsibility to facilitate discussions on the way forward for retirement issues in Malaysia.
“The sub-committee is mindful of the fact that Malaysians are living longer and there is a need to accumulate sufficient funds to ensure post-retirement security,” he added.
He said the sub-committee was set up to review EPF’s policies and procedures and come up with recommendations for the board to consider.
Abdul Halim said the sub-committee had held eight meetings to date and had discussed a number of issues such as contribution rates, withdrawal schemes, members' benefits, social security and a review of the EPF Act, 1991.
He said these issues were best discussed in a rational manner and within a reasonable timeframe so that effective solutions could be identified.
He also said the eight-man sub-committee was made up of representatives from the Government, employers, workers and a representative from the EPF management.
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