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The minimum amount of savings that can be withdrawn is RM 1,000 and can be made at intervals of three months from the date of the last transfer, subject to the availability of the Basic Savings required in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