QuickCheck: Will 10% of your current EPF balance be moved to Account 3 on May 11?

One question that keeps popping up online is that if you were to opt in on May 11, does that mean that 10% of your total contribution balance would be moved to your Account 3?

Is this true?

Verdict:

FALSE

No, it is not true that 10% of your current balance will be transferred to your Account 3 come launch day on May 11 (or whenever you opt in).

Instead, come May 12, qualifying members will have a one-time option to transfer part of their savings balance from their Account 2 into the new Account 3 as an initial amount.

This amount transferred depends on the balance of their Account 2.

If the contributor has more than RM3,000 in their Account 2, the transfer will be made as follows:

- 10 out of 30 (10/30) of the balance in their Account 2 will be moved to Account 3;

- Five out 30 (5/30) of the balance in their Account 2 will be moved to Account 1; and

- The remaining 15 out 30 (15/30) will be retained in Account 2.

If the contributor has less than RM3,000 in their Account 2:

- For contributors who have RM1,000 and below in their Account 2, the entire amount will be moved to Account 3;

- If they have more than RM1,000 but less than RM3,000, then RM1,000 will be transferred to Account 3 with the remainder maintained in Account 2; and

- No distribution will be made to the contributor's Account 1 if they have less than RM3,000 in their Account 2.

References:

1.https://www.bernama.com/en/news.php?id=2291270