15-May-24 12:00

Balqais Yusoff, Head, Policy & Strategy Management, The Employees Provident Fund (EPF)

Why did EPF restructure its member's accounts? Can we do recurring transfers from the Flexible Account to the other 2? Why can't we opt out of the Flexible Account? We get into these and much more in this edition of Enterprise Explores with EPF's Balqais Yusoff.

Over the weekend, EPF's new structure took effect bringing into play a new 3rd account known as Akaun Fleksibel. Enterprise Explores the strategy and rationale behind this move, what we should know about these new changes, and how to navigate them,with Balqais Yusoff, Head of the Policy & Strategy Management Department, at The Employees Provident Fund (EPF).

Effective earlier this week, EPF Member accounts have been restructured from the previous two accounts (Account 1 and Account 2) to three accounts with contributions split 3 ways – with 75% going to Akaun Persaraan, 15% into Akaun Sejahtera, and 10% into Akaun Fleksibel.

Account 1 will be effectively known as Akaun Persaraan: This account will accumulate savings specifically for retirement income.

Account 2 will be effectively known as Akaun Sejahtera: EPF has said that this is designed to address members' life cycle needs during retirement.

And now we have a 3rd account - Akaun Fleksibel: This new account is aimed at providing flexibility for short-term financial needs and savings in this account can be withdrawn as needed.

On top of this, EPF members will have until August 31st to decide whether to opt-in to restructure your existing balance and transfer an initial amount from Account 2 into your Flexible Account. This one-off, initial transfer will be irreversible. Effectively, if you've never withdrawn funds from EPF, this move should restructure your EPF savings to follow the new 75:15:10 ratio.

Join us as we dive into the rationale behind this move, what this says about the evolution of EPF's role in our lives, what we should know about these new changes, and how to navigate them.