SHAH ALAM - Contrary to earlier reports, the proposed monthly mandatory withdrawal of retirement savings will only be applicable to members of the Employees Provident Fund (EPF) who are born in 2010 onwards.
EPF’s clarification today came in the wake of confusions stemming from an announcement by Prime Minister Datuk Seri Anwar Ibrahim over the matter five days ago, where existing members were under the impression that they will no longer able to withdraw their savings lump sum.
"The proposed mandatory monthly withdrawal option however will only apply to new EPF members born in or after 2010 and registered with the EPF after the implementation date.
"The first payout under the mandatory option is only expected to be made when these new members retire, some decades in the future," said EPF in a statement issued after a media briefing session today.
EPF pointed out that no change is intended for the current lump sum withdrawals at age 55 and 60 for existing members adding that the current EPF monthly withdrawal option only applies to members who voluntarily opt-in.
EPF further assures that any decisions on mandatory monthly withdrawal option will be made with careful consideration.
"This proposal is still being refined, and the EPF assures that any decision regarding the mandatory monthly withdrawal option will only be made with careful consideration and alignment with the EPF’s commitment to the best future interests of its members.
"The mandatory monthly withdrawal mechanism will bring Malaysia in line with widespread global practice, as our country remains one of the very small minority that continues to allow lump sum withdrawals and not a regular payout," said EPF.