EPF lays out four proposals

KUALA LUMPUR: The Employees Provident Fund (EPF) has announced four proposed enhancement measures to increase member’s retirement savings.

The EPF would also conduct a consultation exercise to seek feedback from members and related stakeholders on the initiatives before it makes a decision on the matter.

The first proposal is to align the full withdrawal age with the minimum retirement age of 60.

There are two options regarding this proposal – the first is to raise the full withdrawal age from 55 to 60, which will be implemented gradually over the space of 15 years.

The second option is to allow the current practice of allowing full withdrawal at the age of 55.

Further contributions by the employer from the age of 55 can only be withdrawn upon retirement at 60.

The second proposal is to align minimum contributions with the minimum wage legislations.

This would involve making it mandatory for employers of workers on minimum wage to make contributions not just on their basic salary but on allowances as well.

The third proposal is to extend dividend payments for members who choose keep their money with the fund, from the age of 75 to 100.

The fourth proposal is to introduce Syariah-compliant retirement savings in addition to the existing retirement savings scheme.

Members would be given the option to switch to Syariah compliant retirement savings when introduced.

“The EPF is utilising the consultation platform to actively engage with our members and obtain their views on our proposals,” EPF chief executive officer Datuk Shahril Ridza Ridzuan said at a media briefing.

Information on the proposals will be uploaded Tuesday on the myEPF website.

Members can provide input and comments on the proposals for a two-week period through the EPF i-Akaun from Tuesday.

Shahril said EPF would also engage with other stakeholder groups such as the Malaysian Trade Union Congress, Malaysian Employers Federation, members of Parliament, Government agencies and other relevant organisations, before making a decision.