Key Changes Made in EPF (4)

I. TOP – UP SAVINGS IN ACCOUNT 1


Objective:

• To increase members retirement savings and to strengthen family values.

Children may top up parents’ savings.

Members’ spouses may top up each other’s savings.

Top up of savings can be continued until a member attains age 55 years.


J. MATRIMONIAL PROPERTY CLAIM ON SAVINGS OF NON MUSLIM MEMBERS

The amount of claim against member’s EPF savings brought about by way of a Court Order shall be paid to the claimant upon the claimant reaching age 55 years.

Not applicable to Muslim members following a Fatwa (Islamic religious decree) that the EPF savings is not a matrimonial property.


K. MANDATORY FOR LARGE EMPLOYERS TO CONTRIBUTE VIA ELECTRONIC MODE

Objective:

• To encourage large employers to contribute electronically as it is cost - effective, speedier and minimizes payment errors.

Will be made mandatory in phases starting with employers with 1000 and more employees.

In the meanwhile, the other employers may continue to make payments using the usual mode. However, they are encouraged to switch to the electronic payment mode.

Any employer who has been required mandatory to use the electronic mode but fail to do so shall be fined. The amount to be determined.


L. CHANGES TO AGE 50 WITHDRAWAL

Objective:

• To ensure that members have at least RM120,000 at age 55 to sustain through their retirement.

Members who have the basic savings in Account 1 may withdraw their savings in Account 2.

Members who do not have the basic savings in Account 1 must meet the requirement before they can be allowed to withdraw savings in Account 2.