The Employees Provident Fund (EPF) is undergoing significant restructuring, introducing a new flexible account alongside existing accounts to enhance members' financial flexibility.
Effective May 11, monthly contributions will be allocated across three accounts: 75% into Account 1 (Akaun Persaraan), 15% into Account 2 (Akaun Sejahtera), and 10% into the newly introduced Account 3 (Akaun Fleksibel).
According to EPF CEO Ahmad Zulqarnain Onn, the Akaun Fleksibel allows members to withdraw savings at any time for any purpose, subject to a minimum withdrawal amount of RM50. Additionally, members have the option to transfer a portion of their Akaun Sejahtera savings to Akaun Fleksibel during an opt-in window open from May 11 to Aug 31, with the transfer amount based on their Akaun Sejahtera balance at the time of opt-in.
Withdrawals from the flexible account can be conveniently made through EPF i-Akaun or at any EPF branch nationwide. Previously, 70% of monthly contributions were allocated to Account 1, which remains inaccessible until retirement, while the remaining 30% was directed to Account 2, accessible for specific purposes such as education, healthcare, housing, and partial withdrawals at age 50. The restructuring aims to provide EPF members with greater financial control and accessibility to their savings.
Source / Image Credit : Awani
Revathi
Thu Apr 25 2024