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To clarify, the restructuring of EPF accounts impacts all EPF members, including non-Malaysians who have not reached the age of 55 by 11 May 2024.
Malaysia's Kumpulan Wang Simpanan Pekerja (KWSP, or Employee Provident Fund (EPF)) announced on 30 April 2024 an upcoming restructure of members’ accounts.
In preparation for this transition starting 11 May 2024, the KWSP has released a set of frequently asked questions to further clarify any queries on the guidelines.
Q Why did the EPF implement the restructuring of the EPF account?
The restructuring of this account is made for the purpose of:
- Increasing the adequacy of savings to guarantee a meaningful retirement income for members;
- Balancing short, medium and long-term needs in line with the needs of the life cycle and lifespan of members;
- Developing an EPF Scheme that is relevant to the changing employment landscape, changing demographics and the needs of members in the present and future; and
- Meeting short-term financial needs that may affect wellbeing during retirement, if not met.
Q What will happen when the member reaches the age of 55 after the EPF account restructuring is implemented?
For members who have reached the age of 55, all remaining savings in the three accounts will be transferred to Account 55. New contributions received from the age of 55 will be credited to the Gold Account for retirement purposes at the age of 60.
Q Is there a difference in dividend rates between the three accounts?
No. The same dividend rate will apply to all three accounts. Currently, the EPF account restructuring will not change the existing policy on establishing dividend rates.
Q How will the new contributions be credited after the implementation date?
Starting from 11 May 2024, new contributions will be credited across your Akaun Persaraan, Akaun Sejahtera, and Akaun Fleksibel as follows:
Previous structure & its distribution rates:
- Account 1: 70%
- Account 2: 30%
New structure and its distribution rates:
- Akaun Persaraan: 75%
- Akaun Sejahtera: 15%
- Akaun Fleksibel: 10%
When the account restructuring is implemented, existing balances in Account 1 and Account 2 will remain in Akaun Persaraan and Akaun Sejahtera, respectively. Meanwhile, Akaun Fleksibel will start with a zero balance.
An example of the distribution of contributions are as illustrated below:
Between 12 May 2024, and 31 August 2024, members will have a one-time option to transfer part of their Akaun Sejahtera savings balance to Akaun Fleksibel as an initial amount, and this action cannot be cancelled once completed. The determination of this initial amount in Akaun Fleksibel depends on whether the savings balance in Akaun Sejahtera is below or above RM3,000 on the date the opt-in application is made.
To initiate this one-off transfer, members can apply through the KWSP i-Akaun app, or may also visit any EPF offices to apply through the Self-Service Terminals (SST) starting from 12 May 2024.
Q Is there an option for members to not opt for the initial amount transfer?
Yes, but if you choose not to have an initial amount transfer to Akaun Fleksibel, the balance in your existing account will remain in Akaun Persaraan and Akaun Sejahtera. Meanwhile, starting 11 May 2024, new contributions will be credited into Akaun Persaraan, Akaun Sejahtera, and Akaun Fleksibel.
Note that the application can only be made once via the KWSP i-Akaun app during the specified period (12 May till 31 August 2024) and cannot be cancelled once made. For those who opt in, you can expect your application to be approved within three to five working days.
Q How can I withdraw savings from Akaun Fleksibel?
You can withdraw from Akaun Fleksibel any time through the KWSP i-Akaun app. Once processed, the funds will be disbursed directly into your bank account. It's important to note that there is a minimum withdrawal amount of RM50.
No documents are required for submission. However, you will need to provide an active bank account number to facilitate smooth payment processing. If you don't have an active bank account, you can opt for a Purchase Order through the KWSP i-Akaun app, following similar steps.
Q Is Akaun Fleksibel available to members aged 55 and above?
No, the restructuring of EPF accounts impacts all EPF members, including non-Malaysians who have not reached the age of 55 by 11 May 2024. Once they reach the age of 55, any remaining savings across their three accounts will be transferred to Akaun 55, with any subsequent contributions credited to Akaun Emas.
ALSO READ: Malaysia's KWSP to restructure members’ accounts from 11 May 2024
Lead image / KWSP
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