KUALA LUMPUR - The government is considering amending the Employees Provident Fund (EPF) Act 1991 to raise the age for partial withdraw by contributors to 55 years and full withdrawal to 60.
Deputy Finance Minister Datuk Donald Lim Siang Chai said the move follows the passing of Minimum Retirement Age Bill 2012 in Parliament on June 27 to extend the minimum retirement age for private sector employees to 60 from 55 at present.
Currently, contributors can make partial EPF withdraw at 50 and full withdrawal on retirement at 55.
Lim in an interview with Nanyang Siang Pau published today said the government will provide a transition period to continue to allow those who have reached aged 55 to make full withdrawal of their saving.
Human Resources Minister Datuk Seri Dr S. Subramaniam had said in Parliament that with the extension of the private sector minimum retirement age to 60, apart from the EPF, the Social Security Organisation (Socso) would also have to amend its regulations.
Some EPF contributors have expressed concern that the minimum retirement age law would prevent them from making full withdrawal at 55 years.
Lim said in tandem with the passing of the Minimum Retirement Age Bill 2012, the amendments to be made to the Employee Provident Fund Act 1991 being considered include the withdrawal procedures and other clauses to ensure they keep abreast of changing times.
He said considerations will be made regarding the flexibility in making withdrawals for specific purposes.
At present, contributors can make partial withdrawal of their savings for house purchase, medical treatment, children's education and for investment in unit trusts.
Lim said during the transition period, contributors who have reached 55 years old can still make lump-sum or full withdrawal.
Subramaniam had earlier reportedly said for the time being there would not be any change to the policy for full withdrawal by contributors upon reaching 55 years old.
He said the government wanted to amend the Employee Provident Fund Act 1991 to ensure that those who work until 60 can continue to contribute to the fund until retirement.
"The feedback received by Human Resources Ministry showed that the people want the policy for full withdrawal of EPF saving at 55 years old retained," he said.
Sundaily
The feedback received by Human Resources Ministry showed that the people want the policy for full withdrawal of EPF saving at 55 years old retained
ReplyDelete55 years old full withdrawal should be maintained.
The people's opinions should be considered, if what they want is full withdrawal on age of 55, the government should consider it.
DeleteAgree. People's opinions are important since most of them are the contributors. It's their money.
Deletebetul juga...kemahuan pencarum perlu dipertimbangkan..
DeleteGovernment should consider maintaining the 55 years old withdrawal since majority of the people wants it to be maintained.
DeleteRakyat juag berhak kepada kewangan sendiri.
DeleteListen to the people voice, they have their concern too.
DeletePETALING 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.
ReplyDeleteThe 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.
Many wanted the option of withdrawing their savings at 55 even if the retirement age was raised to 60, saying that they required their savings for pressing needs such as their children's education and elderly parents' medication while some felt that they deserved the flexibility of choosing when they could withdraw their savings.
MTUC secretary-general Abdul Halim Mansor said they were in the dark about the planned amendment.
“We have not been involved in any discussion regarding raising the age of EPF withdrawal or any other amendment to the Act,” he said.
However, he agreed with the proposal, saying EPF contributions were meant to be used after retirement.
“Our intention is for workers to have sufficient funds after retiring.”
He said the Government should however consider allowing contributors flexibility to withdraw their savings at 55 for specific reasons.
Fomca chief executive officer Datuk Paul Selvaraj agreed, saying workers should not withdraw their savings until retirement.
“However, if they decide to retire earlier, they should be given the option to withdraw their savings before 60,” he said.
Hopefully the government will make serious considerations before amending the EPF withdrawal age.
ReplyDeleteGovt must make a wise decision. This will affect the people's vote also.
Deleteharap kerajaan akan mempertimbangkannya...wang tersebut adalah hak pencarum..
DeleteThe people will be unhappy if the government amend the EPF withdrawal age.
DeleteUnhappy people means support towards the government will reduce. This would effect the people voting decision when election comes.
Deleteapa2 keputusan mestilah memberi manfaat kepada pencarum.
Deleteperlu pertimbangkan suara majoriti rakyat/ pencarum KWSP.
Deleteharus mendengar suara rakyat sebelum memutuskan keputusan dan membuat perubahan.
DeleteKerajaan pasti akan mendengar suara rakyat.
DeleteIf the minimum age of retirement for Private sector is raised to 60 years, what about Public sector?
ReplyDeleteI think it is the same age of retirement. If I'm not mistaken.
DeleteOMG i can feel that i am not be able to withdraw my money because im going to die before i reach age 60.... this is so Sad!
ReplyDeleteWe could not predict our future. Better practice a healthy lifestyle from now.
DeleteRafizi, palis2x jauh2x but accidents may happen too. Critical health problem is not the only reason a person die.
DeleteWang KWSP akan diwarisi oleh anak2 juga atau ahli keluarga sendiri.
DeleteWhy not make it 50. We are not too healthy nowadays. Believe me, we are not going to enjoy our money.... in age 60 what else can we do? There nothing much we can do in that age!
ReplyDeletePlan your future wisely and the rest in God's hands.
DeleteWe planned out future, but its no longer in our hands should they proceed with the ammendment, right ?
DeleteI planned to retire when i'm 55, go back to kampung, and start my fish farm.. Now what ? Am i forced to retire at 60 ?
Leaving everything to GOD is a lame excuse when things are run by people who makes life difficult for us and we're suppose to wait for GOD to change this people.
Ins in our hands to chenge the government who is playing with our retirements...
60 ? And at 55, you can only withdraw 30 % from account 2 ?
That means, next 5 years, NO FULL WITHDRAWALS from contributors, only from ACC 2....
When you make a policy not to pay someone a full amoun t of their money, it only means one damn thing... NO FUNDS LEFT to pay in full...
Give Money to taxi driver to buy tyres.... BR1M,.. and maybe BR1M 2.. then IM4Y.... Thease are targeting certain group and money comes from where????? What about the middle income people ???
We get shit but higher traffic summons to regain what they have spent... And now traffic police also start asking more as bribe....
Getting sick and sicker everyday of how the country is managed...
They can do anything but dont mess with the people retirement funds...
Dengan jumlah yang ada dalam EPF, tidak semestinya boleh menjamin kehidupan semasa tua nanti.
DeleteLet them consider the people's view.
ReplyDeleteConsider the people as they are known to be major contributors.
ReplyDeleteLets see what final decision the government will come up with.
ReplyDeleteHopefully the finally decision is make people satisfy and happy.
DeleteOnly God knows what the future holds.
ReplyDeleteAdvice...live healthy and be safe...peace.
ReplyDeleteKebanyakan mereka yang bersara akan mengeluarkan wang KWSP pada 55 tahun, jadi sepatutnya tidak menjadi isu.
ReplyDeletepengeluaran wang KWSP sesuai pada usia 55 tahun.
DeleteTo me, I think 55 is a best and ideal age too. What the reason that government revise the withdrawal age?
DeleteGovernment must consider the people's feedback before making amendments on the withdrawal age.
ReplyDeleteHopefully the people's opinion will be taken into considerations by the government.
DeleteKita tunggulah pengumuman rasmi daripada kerajaan persekutuan.
ReplyDeleteharapkan pengumuman yang rakyat menantikan. Rasa-rasa umur 55 adalah yang terbaik.
Deletesebelum sesuatu keputusan dibuat, pasti baik dan buruk sudah dikaji terlebih dahulu.
DeleteJangan-jangan kerajaan semakin tiada duit, sehingga duit EPF juga dipergunakan.
ReplyDeletetidak perlulah pandai-pandai buat kesimpulan sendiri kalau kita tidak faham apa yang sebenarnya berlaku.
DeleteDuit itu bukan untuk kita sendiri tetapi untuk anak kita.
ReplyDeletePemberian berperingkat adalah idea yang baik juga.
ReplyDeleteWe can't do much as the government will decide by their own, we have no say about our own money.
ReplyDeleteBagi pendapat saya biarkan penyimpang menentukan adakah pada 55 atau pun 60 tahun. Pilihan dibuat oleh individu itu sendiri.
ReplyDeleteBetul juga itu. Buat pilihanlah. Mana tahu ada pihak yang ingin cepat dan yang mahu lambat. Jadi kita tunggu saja apa yang diberitakan lagi mengenai pengeluaran wang simpan ini.
ReplyDeleteisu ini masih dalam perbincangan lagi, tapi sudah ada pihak yang cuba mensensasikannya.
ReplyDeletesekarang ini semua pun mahu dipolitikkan.
Deletesebelum keputusan dibuat, perbincangan dibuat melibatkan tiga pihak iaitu, kesatuan sekerja, majikan dan pihak kerajaan. jadi ini tidak harus dijadikan isu.
ReplyDeleteThe Employees Provident Fund (EPF) Act 1991 will be amended to make it mandatory for private sector employees, working until 60 years, to continue contributing to EPF.
ReplyDelete
DeleteHuman Resource Minister Datuk Seri Dr S. Subramaniam said the amendment was in line with the Minimum Retirement Age Bill 2012 approved in Parliament in June, whereby the retirement age for workers in the private sector was extended to 60 years from 55.
DeleteEPF, after discussing with the Human Resource Ministry, agreed that the withdrawal of EPF contributions stays at age 55 and contributors can withdraw 30 per cent at 50 and the balance of 70 per cent at 55 as stipulated in the Act.
DeleteContributors who do not withdraw their money at 55 can continue to contribute to EPF and withdraw them at age 60.
DeleteStarting next year, private sector employees who work until the extended retirement age of 60 will have the option to withdraw their Employees Provident Fund (EPF) savings at the same age.
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DeleteStarting next year, private sector employees who work until the extended retirement age of 60 will have the option to withdraw their Employees Provident Fund (EPF) savings at the same age.
DeleteAn amendment to the EPF Act 1991 will be carried out to facilitate this regulation, Human Resources Minister Datuk Seri Dr S. Subramaniam said.
DeleteUnder the amendment, the EPF will also compel those who work until the age of 60 to continue to contribute to their EPF savings throughout their term of employment.
The amendment is in line with the private sector Minimum Retirement Age Bill 2012, which was passed in Parliament in June.
DeleteThe Bill stipulated that the minimum retirement age in the private sector be raised from 55 to 60 years old.
DeleteThe EPF, after deliberations with the ministry, has decided that a 30% EPF withdrawal can be made at age 50 and the remaining at 55 years old. But those who don't take out their savings at 55 can make the full withdrawal at 60 years of age. Dr Subramaniam said after chairing the National Labour Advisory Council meeting at the ministry. The council is the highest national authority governing labour issues and convened for the third time this year.
Delete