Malaysia EPF enhancement effective 1 January, 2017

EPF withdrawals

effective from Jan 1, 2017

ENHANCEMENT INITIATIVES		DESCRIPTION
1.	Below 50	·     Contributions are divided into Account 1 (full withdrawal at age 55) and Account 2 (withdrawals can be made subject to current eligibility and procedures for Housing, Medical, Education and Haj).
2.	At age 50	·     Members can make full withdrawal of their savings in Account 2 to prepare for their retirement.
3.	At age 55 (Age 55 Withdrawal)	·     Contributions from Account 1 and 2 will be transferred to Akaun 55 for members who have reached age 55 and above starting 1 January 2017. ·     After the transfer to Akaun 55, any withdrawals can be made subject to current eligibility and procedures.
4.	Between age 55 - 60 Akaun Emas (Age 60 Withdrawal)	·     Any contributions received after age 55 starting 1 January 2017 will be parked under the new Akaun Emas. ·     Accumulated contributions can only be withdrawn at age 60. ·     Upon reaching age 60, balances in Akaun 55 and Akaun Emas will be combined for withdrawal.
5.	Dividend Payment and Unclaimed Savings	·     Dividends will continue to be credited into members’ account until the savings are transferred to the Registrar of Unclaimed Monies after 100 years ·      Members will continue to enjoy annual dividend up to age 100.
6.	Nomination	·     Initial payment of Death Withdrawal has been increased from RM20,000 to 25,000 depending on balance of savings in the deceased members’ account. ·     Witness no longer required for nominations. ·     For Muslim members: o   Clarifying the role of executor/administrator in nomination form o   Nomination will be revoked if withdrawal application is not made within one (1) year after member’s death o  Under-aged nominee can execute the responsibility of executor/administrator upon reaching 18 years old.
7.	New Basic Savings Quantum	·     The Basic Savings quantum will increase from current RM196,800 to RM228,000 to align with the revised minimum pension for public sector employees (RM820 to RM950 monthly) ·     Eligibility to participate in the EPF Member Investment Scheme (EPF-MIS) has been increased from 20 per cent to 30 per cent of savings in excess of the Basic Savings quantum by age in Account 1.