MOF: EPF Monthly Payout Plan Won’t Affect Current Withdrawals

KUALA LUMPUR, Aug 7 (Bernama) -- The proposed implementation of monthly pension-style payments for Employees Provident Fund (EPF) members, announced during the tabling of the 13th Malaysia Plan (13MP), will not affect the withdrawal rights of existing members, said Deputy Finance Minister Lim Hui Ying.

She said the proposal, as announced by Prime Minister Datuk Seri Anwar Ibrahim, would apply only to new members registering after the new mechanism takes effect.

However, she said, existing members may choose to opt in voluntarily.

“The proposed restructuring of EPF accounts will introduce a new mechanism allowing part of members’ savings to be allocated specifically for regular income during retirement,” she told the Dewan Rakyat during a question-and-answer session on Thursday.

She was responding to a supplementary question from Mordi Bimol (PH-Mas Gading), on the rationale for introducing monthly pension-style payouts, as announced under 13MP.

Lim said the new mechanism aims to ensure members’ savings last longer throughout retirement, in line with rising life expectancy.

“The new structure will take effect once members reach the minimum retirement age. Their savings will be split into two main components — flexible savings, which can be withdrawn at any time based on members’ needs, and income savings, which will be disbursed regularly or monthly until fully utilised.

“This proposal aims to strengthen retirement income security and support more sustainable financial management,” she added.

-- BERNAMA