Bosses and MTUC at odds over EPF’s withdrawal proposals

PETALING JAYA: As expected, employers and employees are at odds over the EPF move to make changes to its withdrawal scheme.

The Malaysian Employers Federation is supportive of having the full withdrawal age at 60, in line with the current retirement age.

It even wants the EPF to stop all withdrawals before the retirement age to ensure that members have enough money for their golden years.

MEF executive director Datuk Shamsuddin Bardan said the fund should review its current withdrawal schemes for education and housing.

“The principle of saving money in EPF is to ensure that there is enough when members retire,” he said.

Shamsuddin said that instead of such withdrawals, there should be more avenues to help members pay for education and housing such as loans provided by the National Higher Education Fund Corporation (PTPTN).

Shamsuddin said the MEF was interested in discussing the proposals with EPF.

The Malaysian Trades Union Congress (MTUC), however, wants the full withdrawal age to remain at 55.

“Most workers want to withdraw their savings at 55 and this should remain as an option.

“The EPF should conduct a campaign to educate the public on how to manage their finances so that they have enough money when they retire,” MTUC president Mohd Khalid Atan said.

He said the MTUC’s general council would discuss EPF’s four proposals and come up with a collective decision.

Mohd Khalid said while some Malaysians might not live up to 75 and above, their next-of-kin could be the beneficiaries of the savings.

“However, the choice is still up to the individual.

“If he or she lives up to 75 and above, it is up to the person to decide to keep their savings in the EPF,” he added.