EPF withdrawal for 23 more critical illnesses

PETALING JAYA: Malaysians can withdraw money from their Employees Provident Fund (EPF) account from today for the treatment of 36 critical illnesses compared to only 13 previously.

However, the Malaysian Trades Union Congress has slammed the move, saying the money should be kept for one’s old age and that the Government should absorb the costs through its hospitals and healthcare benefits.

The list, which currently allows for the withdrawal for treatment of critical illnesses like major organ transplant, multiple sclerosis, stroke and cancer, has now been expanded to include Alzheimer’s, Parkinson’s, chronic liver and lung diseases and lupus.

Also included in the list of 36 is treatment for heart attack, coma, kidney failure and paralysis, the EPF said in a statement yesterday.

In addition to the 36 critical illnesses, the statement said that members can now make withdrawals to treat family members below the age of 16 for another three critical illnesses: severe asthma, leukaemia and intellectual impairment due to accident or sickness.

“The expanded list takes into consideration the significant costs required in treating these critical illnesses and is aimed at helping members fully settle medical bills or ease their financial burden of seeking treatment.”

Under the EPF Health Withdrawal scheme, members are allowed to withdraw from their Account II to pay for their own and family members’ medical costs for the treatment of critical illnesses.

“Family members include spouse, children, step-children or legally adopted children, parents, parents-in-law, step-parents or legal foster parents and siblings,” the statement said, adding that members could also make joint withdrawals with family members to cover the required medical expenses.

MTUC secretary-general G. Rajasekaran called the move “unacceptable,” stating that EPF savings should not be depleted as it were meant for old age.

“People should not be encouraged or compelled to withdraw money to treat illnesses. The Government’s healthcare benefits should provide for those who cannot afford to pay for the treatment of critical illnesses,” he said.

Rajasekaran said the majority of contributors were from the private sector and depended on their EPF savings to survive after they retired at 55.

“Many live for another 20 years and do not have much to rely on except their EPF savings.

“About 50% of the five million contributors have about RM50,000 in their account when they retire. Divide this by 20 years, this means they have to survive on RM208 a month after retiring.

“What are they going to survive on if money is taken out to treat illnesses? It makes a mockery of EPF’s slogan Simpanan Hari Tua Anda (Savings For Your Old Age),” he added.

Rajasekaran said other measures could be implemented such as raising the retirement age in the private sector from 55 to 60 to enable members to contribute and save more for their old age.

According to EPF, members were not eligible for the withdrawal if the medical treatment cost was fully covered by their employer or if they were receiving fertility or alternative treatments.

For more information, log on to www.kwsp.gov.my, contact EPF’s call centre at 03-8922-6000 or visit its nearest branch.