New EPF members may only withdraw at age 60

If you are working in the private sector, or if you are contributing to the Employees Provident Fund (EPF), this would be of interest to you.

The Borneo Post, Thursday, 20-6-2013

To all new contributors, nothing has been decided yet; this is just a proposal if it worries you. But personally, I think the withdrawal should be made flexible once a contributor reaches age 55. He/she has been planning all his/her working life for things to 'happen' at 55 so, let him/her have it her way for once.


New members may only withdraw at age 60

The Employee Provident Fun is considering new ruling that new contributors only be allowed to withdraw their savings after the age of 60 instead of the current 55.

Deputy Finance Minister Datuk Ahmad Maslan said this was one of the proposal being mulled over in light of the minimum retirement age being increased to 60 effective July 1.

Currently, contributors can still withdraw their EPF savings at 55, either as a lump sum, monthly amounts or a combination of both options.

This flexible withdrawal scheme would enable contributors to obtain a fixed and consistent income for a long period amidst worries that their money would be exhausted within few years.

"However, no decision has been made on this proposal yet," Ahmad said after a working visit to EFP the day before.

EPF chief executive officer Datuk Shahril Ridza Ridzuan said any change would only take place after th EPF Act had been amended. He said members could still contribute to the fund despite the retirement age being extended to 60.

He said contributions for employees remains at 11% and 12% (13% for those earning less than RM5,000) until the employee reached 60. As of March 31 this year, EPF has 13.69 million members and 509,139 employers. - The Borneo Post

EPF withdrawal stays at 55

I tried not to be overly critical to the people (hence the Government) who manage and run the country. In fact, you can find nothing in my previous 300 plus postings that is slanderous in nature. But the manner in which the current EPF issues is handled is quite ridiculous, or un-assuring if you like. Nobody seem to be assertive enough to give confirmation.

Let see what the executives responsible for handling it, have to say:

1. Human Resource Minister Datuk Seri Dr S Subramaniam advised EPF subscribers not to believe in rumours or speculations that those from the private sector could only make their EPF withdrawal after they had reached 60 years old. No decision has been made yet.. (June 18, 2012. Kuala Lumpur).
2. Deputy Finance Minister Datuk Donald Lim Siang Chai said “It is a consequential move. Once we raise the minimum retirement age, we have to raise the age of EPF withdrawal as well,”. Decision has been made...only a matter of time before the amendment is made.(The Star Online, July 17,2012)

This is what EPF Public Relations Manager, Nik Effendi Nik Jaafar said in today's local media, Daily Express:- "EPF withdrawal stays at 55 even if the retirement age is extended to 60 years old". 

Image capture is appended herewith, so that you can quote me.

Daily Express, July 19, 2012

So, which is which? A little clarification is needed. Thank you.

Retirement age is raised to 60 - Consequently EPF withdrawal is at age 60

Because retirement age is raised from 55 to 60, full withdrawal of your EPF can only be made upon attaining age 60. At least that is what I understand from what I read in the local mainstream media today.

Last month, Human Resources Minister, Datuk Seri Dr S. Subramaniam clarified to the media in Kuala Lumpur that no decision has been made by the government on the age limit for the Employees Provident Fund (EPF) withdrawal for private sector employees yet. He advised EPF subscribers not to believe in rumours or speculations that those from the private sector could only make their EPF withdrawal after they had reached 60 years old.

Today, The Star Online reported that Deputy Finance Minister Datuk Donald Lim Siang Chai said 'the decision had been made and it was only a matter of time' before the amendment would come into effect.

If you ask me, I would like to see options. If I retire at age 55 instead of the (would be) mandatory retirement age of 60, I want to be able to withdraw my contributions at that age. Not everyone would want to retire at 60, mind you.

Leaving us with no option is one thing. Government ministers issuing contradicting statements about the amendment is not less than embarrassing. If you force me to keep my money with EPF for additional 5 years, then I won't stage a war with you. Just do it professionally without making yourselves look like a dis-organised institution.


Re-cap of The Star Online report:
Full EPF withdrawal at 60
July 17, 2012

PETALING JAYA: The age for full withdrawal from the Employees Provident Fund (EPF) by contributors will be raised to 60 years and partial withdrawal to 55.

The planned amendment to the Employees Provident Fund (EPF) Act 1991 follows the passing of the Minimum Retirement Age Bill 2012 in Parliament last month which extends the minimum retirement age for private sector employees from 55 to 60.

“It is a consequential move. Once we raise the minimum retirement age, we have to raise the age of EPF withdrawal as well,” said Deputy Finance Minister Datuk Donald Lim Siang Chai.

He said the decision had been made and it was only a matter of time before the amendment would come into effect. Currently, contributors can make partial EPF withdrawal at 50 and full withdrawal of their savings upon retirement at 55.

However, Lim said they were looking at providing a transition period for contributors who have already planned to withdraw their contributions within the next few years.

“We have not finalised the transition period, but it will be between three and five years,” he said adding that during this period, contributors who reached the age of 55 could still make full withdrawals.EPF contributors had expressed concern about whether the age for full EPF withdrawal would be raised.

You can read further at: http://thestar.com.my/news/story.asp?file=/2012/7/17/nation/11676473&sec=nation

EPF withdrawal at age 60: are you in favour?

"Don't believe a word. They're just rumours or speculations".

That was what the Human Resources Minister clarified to the media in Kuala Lumpur, Tuesday. According to him, no decision has been made yet by the government on the age limit for the Employees Provident Fund (EPF) withdrawal for private sector employees.

Daily Express, 19-06-2012

Re-cap of Bernama report

KUALA LUMPUR, June 18 -- No decision has been made by the government on the age limit for the Employees Provident Fund (EPF) withdrawal for private sector employees, Human Resource Minister Datuk Seri Dr S Subramaniam said today. He advised EPF subscribers not to believe in rumours or speculations that those from the private sector could only make their EPF withdrawal after they had reached 60 years old.

He said this in response to concerns raised by EPF subscribers over the age limit for EPF withdrawals, following the tabling of the Minimum Retirement Age Bill in Parliament last Wednesday, which set the minimum retirement age for private sector employees at 60, effective January next year.

Speaking to reporters after opening a seminar on improving the administrative system of Social Organisations here, Subramaniam said the ministry understood the concerns raised by subscribers and would discuss the matter with the EPF. In another development, he said the ministry was in discussions with EPF to introduce a special pension scheme for private sector employees to address the problems of poverty and the high cost of living once they retire.

"No decision has been made and we will continue to discuss the matter with the EPF," he added.


TheGreenMechanics' two cents:

The Minimum Retirement Age Bill should be a straight forward exercise which should not be complicated with tying it with the EPF withdrawal rules. Rumour has it that an employee would finish up his EPF retirement savings just after 3 to 5 years from the withdrawal date. If that is the reason for the rumoured extension of EPF withdrawal age to 60 then I feel it is very unfair on the part of the government.

You (the govt) have already extended the minimum retirement age from 55 to 60; meaning you've taken care  of additional 5 years of that employee's welfare. Moreover, during the additional 5 years of working the employee is fully contributing to his 'extended' retirement coffers.

Leave the man (and woman) alone. Let him withdraw at current age limit of 55, remember it's his money he's been saving according to the law till age 55. Don't amend the law to withhold what is rightfully his.

It's still a long shot but I want to state what I want for myself long in future: I want my money at 55 and not 60. I am fully entitled to it and I want and can manage it better than EPF does.