‘Flexible' third EPF account to be implemented in April 2024, says Ahmad

KUALA LUMPUR: The third Employees' Provident Fund (EPF) account, or “flexible" account, will be implemented in April 2024, said Datuk Seri Ahmad Maslan.

"The dividends for EPF accounts will be announced in February 2024, and the Finance Ministry will announce a detailed plan on the flexible account afterwards.

"The relevant organisations can give their views on the flexible account through the Finance Ministry and also EPF," said the Deputy Finance Minister I after opening the 40th Asean Association of Social Security Directors Council Meeting (ASSA) on Monday (Nov 21).

ALSO READ: Govt should explain need for third EPF account, says Dr Wee

The Prime Minister announced the third EPF account in Budget 2024.

"It will be implemented, but guidelines are needed to ensure it does not adversely affect people’s incomes and that money from the third account can only be withdrawn during emergencies.

"What counts as an emergency will be detailed later. During Covid-19, RM145bil was withdrawn through four withdrawals, and the government decided there would be no more withdrawals,” said Ahmad.

In July, the EPF was reported to be looking into introducing Account 3, which would allow savings withdrawals to be made at any time.

ALSO READ: ‘Flexible account open to all’

The account, it said, would function like a savings account, and members could withdraw their savings at any time.

The proposal to introduce the account was also to meet the potential emergency cash needs.

The current EPF savings scheme structure for members under the age of 55 consists of Account 1 and Account 2, with a percentage rate of 70% and 30%, respectively.