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Thursday, April 17, 2008

Employee Provident Fund (EPF) Member's Investment Withdrawal Eligibility


Member's Investment Withdrawal Eligibility

Effective 1 November 2007, EPF under its ”Beyond Savings” strategic initiative has introduced various enhancements to member’s benefit structure in stages. These enhancements are in accordance to the EPF Act 1991 (Amendment 2007) . One of the enhancements is the introduction of the basic savings concept that will be used to determine the minimum sum a member is allowed to withdraw from Account 1 for Investment Withdrawal.
Definition of Basic Savings
Basic Savings is an amount to be put aside in Account 1 progressively at various pre-determined age levels to enable a member to accumulate a minimum savings of RM120,000 at age 55.

A member needs to have a basic savings amount at the predetermined age levels. Amount in excess of the basic savings can be invested in products offered by external fund managers approved by the Ministry of Finance.



Conditions For Investment Withdrawal

  • Effective 1 February 2008, members can invest not more than 20% of their credit in excess of Basic Savings in Account 1 in products through approved external fund managers.

  • The minimum amount of savings that can be withdrawn is RM 1,000 and can be made at intervals of three months from the date of the last transfer, subject to the availability of the Basic Savings required in Account 1.

  • There are no other changes in conditions for the Member’s Investment Withdrawal.

  • Please refer to the Appendix for the Basic Savings Table and examples of allowable withdrawal for the Member’s Investment Withdrawal.
Required Basic Savings In Account 1


Age
(Years)
Basic Savings
(RM)
Age
(Years)
Basic Saving
(RM)
18
1,000
37
34,000
19
2,000
38
37,000
20
3,000
39
41,000
21
4,000
40
44,000
22
5,000
41
48,000
23
7,000
42
51,000
24
8,000
43
55,000
25
9,000
44
59,000
26
11,000
45
64,000
27
12,000
46
68,000
28
14,000
47
73,000
29
16,000
48
78,000
30
18,000
49
84,000
31
20,000
50
90,000
32
22,000
51
96,000
33
24,000
52
102,000
34
26,000
53
109,000
35
29,000
54
116,000
36
32,000
55
120,000

Some Examples To Compute The Allowable Investment Amount


Member
Age
Savings In Account 1
(RM)
Basic Savings (RM)
Computation: Savings In Account 1- Basic Savings x 20%
Member's Eligibility
A
22
4,000
5,000
-
Not qualified as the savings is lesser than the basic savings required.
B
22
8,000
5,000
(8,000 - 5,000) x 20% = RM600
Not qualified as the savings is lesser than required minimum investment amount of RM 1,000.
C
25
20,000
9,000
(20,000 - 9,000) x 20% = RM2,200
Qualified as the savings is more than the basic savings and minimum limit.
D
40
40,000
44,000
-
Not qualified as the savings is lesser than the basic savings required.
E
45
100,000
64,000
(100,000 - 64,000) x 20% = RM7,200
Qualified as the savings is more than the basic savings and minimum limit.

Enquiry

It is important for you to furnish your full current address in EPF Forms when submitting your applications. Should there be any change to the given address after you made your submission, you must notify the nearest EPF office immediately. Again, this would avoid unnecessary delays in processing your application.
If you have any enquiries or require further information about investment withdrawals, please contact:


  • Nearest EPF office

  • EPF Call Management Centre at 03-8732 6000

  • Short Messaging System (SMS) – Type EPF and send to 36373
Please quote your EPF number or your Identification Card number and the type of withdrawal that you have applied for when you contact the EPF. You may also visit EPF’s website to obtain further information about EPF withdrawals.


Download form: KWSP 9N (AHL) - Application for Investment Withdrawal [PDF: 94.73kb]

Link

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For investment in Islamic unit trust funds (mutual funds) and other Islamic products in Malaysia, pls contact:
Ahmad Sanusi Husain, Islamic Investment Consultant, CWA (CIMB Wealth Advisors)
UOA 2 Tower, KLCC, Kuala Lumpur:
e-mail: sanusi.my@gmail.com / Mobile no: +6012-610 0526 / Skype: sanusimy
consultant profile: http://ahmad-sanusi-husain.blogspot.com

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