EPF to Launch Two New Facilities Called i-Sayang and i-Lindung
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The Employees Provident Fund (EPF) will launch the i-Sayang scheme in the first quarter of 2022 as part of its ongoing endeavour to improve people's livelihood. EPF chairman Tan Sri Ahmad Badri Mohd Zahir stated the facility would enable the voluntary transfer of 2.0% EPF contributions from the husband's to the wife's EPF account.
The EPF is also set to launch another scheme called i-Lindung, enabling members to withdraw from Account 2 to buy life and critical illness insurance via the EPF platform.
The retirement fund is also exploring other initiatives, including the measured approach towards mandating legal EPF coverage to informal sector workers. The EPF would also be advocating its voluntary excess scheme where members can require their employers to raise their EPF contribution beyond the 11% statutory rate.
3.6 mil EPF members have less than RM1,000 in their accounts
Recently, the Finance Ministry (MOF) said that there are 3.6 million EPF contributors with less than RM1,000 in their retirement accounts.
According to the ministry's assessment, EPF contributors had withdrawn about RM101 billion via i-Sinar, i-Lestari and i-Citra facilities. The ministry also said that about 6.1 million contributors have less than RM10,000 in their accounts.
MOF added that EPF savings among Bumiputeras have also diminished as it estimated around 78% of them had applied to withdraw their funds. The ministry said that 4.4 million (54%) of Bumiputera contributors now have less than RM10,000 in their savings and 2 million (25%) have less than RM1,000.
The EPF also said that about 5 million B40 contributors have seen their savings decrease to an average of RM1,005.
Coping with the pandemic
Last month, the EPF stated that it had disbursed RM101 billion to over 7.4 million contributors to cope with the pandemic after introducing i-Sinar, i-Lestari, and i-Citra. That is about half of its total members.
EPF said the special withdrawals had left 73% of its members in a dangerous state of having insufficient funds to retire above the poverty line.
It also estimated that members would need to work an extra four to six years to rebuild their used savings, which also led to a major drop in the percentage of contributors meeting the Basic Savings threshold (RM240,000 at 55 years old) from 36% in 2020 to a projected 27% by the end of 2021.
The EPF office in Jalan Raja Chulan.
EPF Office in Jalan Raja Chulan closes for good
EPF also announced that it would permanently close its Jalan Raja Chulan branch office in Changkat Raja Chulan, Kuala Lumpur, from December 16.
In a statement yesterday, it advised contributors and employers to visit nearby branches, such as the ones in Jalan Raja Laut, Kepong, Wangsa Maju, Seri Petaling or Petaling Jaya, for any transaction.
EPF also said that for other alternatives, employers and contributors could also access its services online via i-Akaun.
You can obtain more information at EPF's official website at www.kwsp.gov.my or contact EPF's Relationship Management Centre at 03-8922 6000.
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