Just yesterday, the Employee Provident Fund (EPF) has announced that four enhancements will be made to its current policies and schemes. These improvements will take place starting 1st January 2018, according to its official website.
These changes are necessary in order for EPF’s members to lead a comfortable life in this challenging time. “These enhancements are to keep pace with changes in member’s needs and expectations,” the CEO of EPF, Datuk Shahril Ridza said.
So, here are the four changes that you should take note of.
1. Members can appoint Amanah Raya Berhad (ARB) as nominee/administrator trustee
Besides appointing any individual as nominee, EPF members will have the option to appoint ARB as the nominee/administrator or trustee to their savings.
This means that upon the members’ departure, the savings will be swiftly and fairly distributed to the next-of-kin, which would greatly benefit children below 18 years old.
2. Members can partially withdraw any amount at any time
The current “Age 55 and Age 60” withdrawal policies allow members to withdraw a minimum of RM2,000 once every 30 days. With the enhancements kicking in soon, members can partially withdraw any amount at any time!
Besides, members who opt for monthly withdrawals will be able to withdraw from as low as RM100 per month, instead of RM250 based on the policy in place.
3. The flexible withdrawal policy will be extended from age 75 to 100
Under this policy, members can make partial withdrawals of any amount of money at any time, and the age limit will be raised from the current 75 to 100 years old. Likewise, this enhancement is parallel to the extension of dividend payment from age 75 to 100.
4. Age of death benefit will be extended from 55 to 60
Currently, the members’ next-of-kin will receive RM2,500 from EPF under the death benefit policy if the member unfortunately dies before the age of 55. However, this age number will be extended until 60 years old, which is in line with the national retirement of age 60 as well.
If you need more clarification on this matter, please visit their official website or contact their management centre.
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