KUALA LUMPUR: The Employees Provident Fund (EPF) announced four enhancements to its schemes and policies effective next month, as part of EPF’s continuing effort to improve and meet members’ increasing expectations.
EPF chief executive officer Shahril Ridza Ridzuan said the key initiatives included the option to appoint Amanah Raya Berhad (ARB) as nominee or administrator trustee, enhancement to “Age 55 and 60” policies withdrawal payment options, flexible withdrawal policy until age 100 and extension of Death Benefit from age 55 to 60.
He said the option to appoint Amanah Raya as nominees or administrator trustee for members’ EPF savings would facilitate faster and equitable distribution of their savings to next-of-kin, upon members’ demise.
“This will be especially beneficial for members with children below 18 years old and to avoid dispute among family members… this new option is in addition to members’ rights to appoint any individual persons as nominees,” he told reporters at a media briefing, here yesterday.
Shahril said for the “Age 55 and Age 60” withdrawal policies, it has now been enhanced and simplified to enable members to make partial withdrawals of any amount at any time.
He said the improved flexibility is opposed to the current policy that only allowed withdrawals of a minimum RM2,000 once every 30 days.
“Members who choose to make monthly withdrawals will be able to withdraw from as low as RM100 per month, as opposed to RM250 under the current policy,” he said.
He added, to help members plan their long-term retirement needs and decide on the optimum withdrawal amount and frequency, the EPF urged members to take advantage of its Retirement Services provided for free at its 18 branches nationwide.
Other enhancements that will be done are the flexible withdrawal policy which allows members to withdraw any amount at any time for partial withdrawals, which has been extended up to age 100 from current age cap of 75 years old.
“Members may also opt to make a combination of monthly and partial withdrawals… this enhancement is in line with the extension of dividend payment from age 75 to 100,” he said.
Shahril also announced that the current death benefit of RM2,500 claimable if the member dies before age 55, will be extended until age 60.
“The enhancement is in line with the national retirement age at 60 years,” he said, adding that all the improvements were made based on the feedback of its members.