EPF revamp: Members below 55 will have three accounts

The Star

A restructuring exercise by the Employees' Provident Fund (EPF) will see the EPF Account 1 being renamed as Account Persaraan (Retirement Account), Account 2 as Account Sejahtera and the formation of the new Account 3 or the flexible account, say sources.  The EPF Account 3 is expected to be announced by the end of April.  Read more at https://tinyurl.com/473hpvt4   WATCH MORE: https://thestartv.com/c/news SUBSCRIBE: https://cutt.ly/TheStar LIKE: https://fb.com/TheStarOnline

Transcript

00:00 "Sources say a restructuring exercise by the Employees' Provident Fund, or EPF, will

00:07 see the EPF Account 1 being renamed as Account Persaran or Retirement Account, Account 2

00:14 as Account Sajatra, and the introduction of a new Account 3 or the Flexible Account."

00:19 The Star has learned that while a date has not been confirmed, the launch of Account

00:23 3 or the Flexible Account is expected by the end of April, with restructuring for members

00:28 under 55 starting May 11.

00:30 Currently, for members aged below 55, 70% of their contributions go into Account 1,

00:37 while 30% goes into Account 2.

00:40 But after Account 3 goes live, the new contributions will be divided as 75% to Account 1, 15% to

00:46 Account 2, and 10% to Account 3.

00:50 The source said members may choose to transfer funds from Account Sajatra to the Flexible

00:54 Account via an opt-in mechanism.

00:57 It added that during the accumulation phase from May to August 31, members can opt-in

01:02 for the initial amount in Flexible Account.

01:05 As for members who choose not to opt-in for an initial amount in their Account 3, their

01:09 balance will start from zero until new contributions are credited.

01:14 Flexible Account savings can be withdrawn any time, with the minimum withdrawal amount

01:19 being 50 ringgit.

01:21 The source said EPF dividends are likely to remain the same.

01:25 The EPF said last year that the proposal to introduce Account 3 was to address potential

01:31 emergency cash needs.

01:32 [End of Audio] Duration: 2 minutes and 30 seconds

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