Changes in KWSP

Posted in Malaysia Investment, Malaysia Mutual Fund & Unit Trust, Malaysia Personal Finance, Malaysia Retirement, Malaysia Risk Management & Insurance |

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Flexible Age 55 Withdrawal (By 1st November 2007)

(a) Members may withdraw all their savings in a lump sum;

(b) Members may withdraw their savings according to a pre-determined amount and at any time (minimum RM2,000 in every 3 months).

Members may also opt to combine payment mode (b) and (c).

Monthly withdrawal means that a member makes an age 55 withdrawal and opts to receive the withdrawn amount every month, in a pre-determined number of months.

Member has to decide the amount to withdraw and the number of months to receive the withdrawal payment.

Every month, the member will receive the monthly payment direct-credited by the EPF, according to the number of pre-determined months. The minimum amount for every monthly payment is RM250.00 for a minimum of 12 months period.

Withdrawing at any time means that a member makes an age 55 withdrawal and opts to withdraw his/her savings according to any amount he/she prefers, at any time he/she decides according to the needs.

This withdrawal method allows the member to withdraw any amount not less than RM2,000 in each withdrawal, in a minimum 30 days cycle.

This is just like withdrawing money from a bank, but with a minimum of RM2,000 for each withdrawal, every month.

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Withdrawals for savings more than RM 1 million (By 1st November 2007)

This means that members who have savings in excess of RM1 Million may withdraw the amount which exceeds the 1 million mark any time, at any age.

Savings in excess of RM1 Million can be withdrawn in totality (all) or in any amount not less than RM100,000 once in every 3 months.

To be in-line with all other pre-retirement withdrawals which allow withdrawals from Account 2, the withdrawals for savings in excess of RM1 Million can be withdrawn from Account 2 first. Additional amount can then be withdrawn from Account 1.

This is ensure that members with high income have at least RM1 Million in their Account 1.

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Administrative Streamline (By 1st November 2007)

(i) Incapacitation benefit claims to be made within 12 months;
(ii) Death benefit claims to be made within 6 months;
(iii) Withdrawal amount disputes to be made within 12 months;
(iv) Disputes of authenticity of withdrawal to be made within 6 months;
(v) Additional penalties involving jail sentence or fine or both, will be imposed on forgery / fraudulent cases.

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Housing Loan Withdrawal (By 1st January 2008)

Withdrawal of approved amount from Account 2 for payment of 1 home installment.

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Restructure of Unit Trust Investment (By 1st February 2008)

Allows members of all age brackets to invest as long as their account amount exceeds the required savings amount.

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Extension of Contribution Age (By 1st February 2008)

(i) Employees aged between 55 and 75 are required to contribute a minimum statutory rate of 5.5% a month
(ii) Dividend payment to be extended to age 75.

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Critical Illnesses Policy Withdrawal (By 1st June 2008)

Savings from Account 2 can be withdrawn to purchase critical illness insurance for oneself and family members.

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Topping Up Account 1 (By 1st June 2008)

(i) Members top-up parents’ accounts;
(ii) Members top-up spouses’ accounts.

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Matrimonial Property Claim (By 1st June 2008)

Claim for a spouse’s savings will be paid to the claimant when he or she reaches age 55.

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Mandatory contribution payment via electronic mode (By 1st June 2008)

(i) Use of electronic medium to pay employees contributions;

(ii) Fines will be imposed for employers who fail to comply.

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Age 50 Withdrawal (By 1st January 2013)

This withdrawal enables you to withdraw all your savings in your Account II upon attaining 50 years of age to help you in making preparations for your retirement.

The EPF will send the pre-printed KWSP 9B (AHL) withdrawal form to its members three months earlier than the attaining 50 years old date. The form will only be sent to members who have updated their address in the EPF’s records. If you wish to receive this service, please ensure that you update your address by completing the KWSP 3 (AHL) form.

Download: Form KWSP 9B (AHL)

Sources: www.kwsp.gov.my

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