THE Employees Provident Fund (EPF) has unveiled a significant restructuring of its members’ accounts aimed at bolstering their income security post-retirement while catering to their evolving life cycle needs.

Effective May 11, 2024, the restructuring will transition from the existing two-account system to three distinct accounts: Akaun Persaraan, Akaun Sejahtera, and Akaun Fleksibel.

“The main focus of the EPF Account Restructuring initiative is to empower members in making decisions to balance future needs for retirement between short-, medium- and long-term financial needs.

“This initiative will also help increase members’ retirement savings so that they will have sufficient retirement income to sustain their needs after retirement,” said EPF CEO Ahmad Zulqarnain Onn.

Commencing May 11, 2024, EPF members under the age of 55 will witness their accounts transformed into the new structure. Balances from the existing Account 1 and Account 2 will be transferred to Akaun Persaraan and Akaun Sejahtera, respectively. Akaun Fleksibel will be initialised with a zero balance.

All subsequent contributions after May 11, 2024, will be allocated as follows: 75% into Akaun Persaraan, 15% into Akaun Sejahtera, and 10% into Akaun Fleksibel.

Between May 11, 2024, and Aug 31, 2024, members will be provided with a one-time option to transfer a portion of their savings from Akaun Sejahtera to Akaun Fleksibel as an initial amount. The transfer will be based on a predetermined formula, allowing members flexibility in managing their financial resources.

Akaun Fleksibel will commence with fresh contributions credited to members’ accounts after the implementation date. Those opting for the initial transfer will have the amount determined based on the balance in their Akaun Sejahtera at the time of application.

Moreover, Ahmad highlighted that this restructuring is not merely a reaction to current needs but a proactive measure to address the evolving job landscape, demographics, and life cycle requirements of EPF members.

“This initiative is not just EPF’s response to current needs, but is a proactive step to help members facing the changing job landscape and demographics of the population as well as the life cycle needs of EPF members.

“With these enhancements, the EPF strives to ensure that every EPF member can manage their finances with confidence and resilience in this dynamic and challenging environment.”

Members will enjoy flexibility in withdrawing funds from Akaun Fleksibel, subject to a minimum withdrawal amount of RM50. Withdrawal applications can be conveniently made online through KWSP i-Akaun or at any EPF branch nationwide.

Upon reaching the age of 55, members’ savings across Akaun Persaraan, Akaun Sejahtera and Akaun Fleksibel will be consolidated into Akaun 55. Subsequent contributions will be channeled into Akaun Emas.

Furthermore, full access to the new system will be available to members on May 12, 2024. - April 25, 2024 

https://focusmalaysia.my/how-will-epf-account-restructuring-address-members-life-cycle-needs/