KUALA LUMPUR: The Employees Provident Fund (EPF) will introduce “Akaun Emas” for members who are still working after the age of 55, effective Jan 1, 2017.
Chief Executive Officer Shahril Ridza Ridzuan said EPF’s age of full withdrawal at 55 years, however, was not affected.
He said the “Akaun Emas” was part of the EPF’s enhancement initiative, whereby new contributions after 55 years of age will automatically be parked under this second retirement fund.
“It can only be withdrawn when members reach age 60, to ensure they have sufficient retirement savings upon reaching that age,” Shahril Ridza told a media briefing on the enhancement of the EPF schemes and policies here today.
At the same time, he said, members who have reached 55 years of age have an option to either make full withdrawals or leave their savings untouched while their new contributions will go to the “Akaun Emas”.
Shahril Ridza said members would enjoy the same dividends for both their accounts.
“Upon reaching age 60, a member’s savings in both ‘Akaun 55’ and ‘Akaun Emas’ will be consolidated for withdrawal purposes.”
Shahril Ridza said employees past the age of 60 could still continue to contribute and keep their savings with the EPF until they reach 100 years of age to enjoy continuous dividend payments.
The “Akaun Emas”, among the initiatives tabled in Parliament last year, was gazetted on Feb 18 this year.
Other enhancement initiatives include changes to the nomination policies, increase in the basic savings quantum, pre-retirement withdrawals for foreign workers and enhancement of policy administration.
All initiatives will take effect from Jan 1, 2017.