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EPF account restructuring must come with withdrawal conditions

EPF account restructuring must come with withdrawal conditions

KUCHING, April 26 ― The Flexible Account under the Employee Provident Fund (EPF) Account Restructuring Initiative must come with withdrawal conditions and/or periods, said the Malaysian Trades Union Congress (MTUC) Sarawak.

Its chairman Zaidi Nasar said the withdrawal of funds under this account should not be made at any time.

“This is so EPF contributors can use funds that they have withdrawn prudently,” he said when commenting on the new EPF Account Restructuring Initiative, which will take effect on May 11.

He said MTUC Sarawak welcomes the restructure so long as they don’t interfere with the Retirement Account.

“With the Flexible Account, it would no doubt help reduce financial commitments of EPF members, especially those who are in need.

“However, our advice to contributors is to use this new facility more transparently and prudently while maintaining a more holistic retirement plan,” he said.

Meanwhile, Michael Kong said the introduction of a Flexible Account demonstrated the EPF’s adaptability to the evolving needs of Malaysians.

“This move, along with the increased contribution of 75 per cent to the Retirement Account, reflects the government’s proactive approach to addressing citizens’ financial concerns.

“By ensuring a balance between long-term retirement savings and short-term financial flexibility, EPF is taking significant steps to secure Malaysians’ financial well-being both during and after their working years,” said Kong, who is Stampin MP Chong Chieng Jen’s special assistant.

He said this latest initiative is yet another example that the federal government understood issues holistically, and is taking proactive measures to address the needs of the people.

The EPF yesterday announced a new Flexible Account under the EPF Account Restructuring Initiative for short-term financial needs.

All accounts of members under the age of 55 will be restructured from two to three accounts, which will be known as “Akaun Persaraan” (Retirement Account), “Akaun Sejahtera” (Wellbeing Account) and “Akaun Fleksibel” (Flexible Account).

Savings under the Flexible Account can be withdrawn at any time according to the member’s needs, with a minimum withdrawal of RM50.

All contributions after May 11 will be allocated into the three new accounts, with 75 per cent into the Retirement Account, 15 per cent into the Wellbeing Account and 10 per cent into the Flexible Account.