Key Changes Made in EPF (1)

A. RESTRUCTURING OF MEMBERS’ ACCOUNT



Note : - On 1 January 2007, members savings in Account 3 was transferred to Account 2 - New contributions received after 1.1.2007 will be apportioned 70% into Account 1 and 30% into Account 2

B. FLEXIBLE AGE 55 YEARS WITHDRAWAL

Objective:

• To encourage members after 55 years to withdraw their savings periodically over a longer period.

Introduce flexible withdrawal options:

• Lump sum
• Monthly Payment (Minimum RM250 for a period not less than one(1) year)
• Withdrawal at anytime subject to a minimum amount of RM2,000 at intervals of, at least, 30 days

Members may purchase an Annuity, Private Pension or invest in other approved investments.

(Members may choose any one or more of the payment options stated above).

C. WITHDRAWAL OF SAVINGS IN EXCESS OF RM 1 MILLION

Objective:

• To encourage members’ with excess savings to invest part of their savings on their own.

A member whose savings has exceeded RM1million can withdraw the amount in excess of RM1 million at any time subject to a minimum withdrawal amount of RM100,000.00 every three(3) months.


D. ADMINISTRATIVE STREAMLINE








* Presently no duration.

** General penalty – 3- year imprisonment @ fine not exceeding RM10,000 @ both.