Let the rakyat decide how to spend their EPF savings, says MCA
PETALING JAYA: EPF funds are hard-earned savings of Malaysians and it is unfair for the government to dictate how retirees should spend them, says MCA vice-president Datuk Seri Dr Wee Jeck Seng (pic).
He said a proposal under the 13th Malaysia Plan (13MP) to include the introduction of a monthly EPF pension scheme was expected to replace the current system, which allowed full withdrawals in one lump sum upon retirement.
He said while the MCA acknowledged that the proposed reform was aimed at reducing the risk of retirees depleting their savings prematurely, such conditions restricted the freedom and flexibility of EPF members in spending their funds.
Wee, who is the Tanjung Piai MP, said instead of enforcing a mandatory approach, the government should give members the freedom to choose or opt for the new scheme.
“We urge the government to reconsider and listen to the rakyat. EPF savings are accumulated over many years of hard work.
“It is not fair for the government to dictate how retirees should use their own money.
“Many members approaching retirement may already have plans in place and their choice of how to spend their savings should be respected.
“If this reform is to be implemented, it must be flexible and not be a rigid one-size-fits-all policy,” he said in a statement.
Wee said with notable gaps in the current proposal, the government must ensure transparency is in place and the interests of EPF members are protected on how they choose to access their funds.
According to the 13MP tabled on Thursday, the government was considering introducing a monthly pension payout under the EPF, in addition to the current lump-sum withdrawal option, to provide retirees with a more stable income stream.
Meanwhile, the EPF said any decision on a monthly pension payout scheme for its members will be made after thorough engagement with key stakeholders and careful consideration of long-term interests.
It said the government’s proposal under the 13MP was currently under review.
“In the meantime, current EPF rules and withdrawal mechanisms remain unchanged.
“Any updates will be communicated through official and timely channels once available,” it said in a statement.
