Good News as Employee Providence Fund (EPF) has announce a new enhance EPF schemes starting from January 2018 and it’s a great benefit to it’s member.
Image via The Malaysian Times
As according to the CEO of EPF, Datuk Shahril Ridza, “These enhancements are to keep pace with changes in member’s needs and expectations,”. This announcement will be definitely a good start for 2018
There are 4 new changes on the EPF Schemes and they are:
1. Member can appoint Amanah Raya Berhad (ARB) as nominee/administrator trustee
Members will have the option to appoint Amanah Raya Berhad (ARB) as the nominee/administrator or trustee to their EPF savings. This would facilitate faster and equitable distribution of their savings to next-of-kin, upon members’ demise.
This would be especially beneficial for members with children below 18 years old. This new option is in addition to members’ existing right to appoint any individual persons as nominees.
2. Enhancement to Age 55 and Age 60 withdrawal payment options
The Age 55 and Age 60 withdrawal policies have been enhanced and simplified to enable members make partial withdrawals of any amount at any time, as opposed to the current policy that only allows withdrawals of a minimum of RM2,000 once every 30 days.
In addition, members who choose to make monthly withdrawals will be able to withdraw from as low as RM100 per month, as opposed to RM250 in the current policy.
To help members plan their long-term retirement needs and decide on the optimum withdrawal amount and frequency, the EPF urges members to take advantage of its Retirement Advisory Services provided for free at its 18 branches nationwide.
Image via Barisan Nasional
3. Flexible withdrawal policy until age 100
The flexible withdrawal policy, which allows members to withdraw any amount at any time for partial withdrawals, has been extended up to age 100 from the current age cap of 75 years old.
Members may also opt to make a combination of monthly and partial withdrawals.
This enhancement is in line with the extension of dividend payment from age 75 to 100.
4. Extension of Death Benefit from age 55 to 60
The current death benefit of RM2,500 claimable if the member dies before age 55, will be extended until age 60.
This enhancement is in line with the national retirement age at 60 years old.
This is extracted from the official KWSP website and if you need further clarification on this matter, please visit their official website or contact their management centre.