Speedy EPF withdrawals

In today’s fast-paced life, consumers expect convenience at their fingertips. Aided by mobile communications and the Internet, people are able to make online transactions and do most of their banking with a just a few clicks of the mouse.

No longer does one have to queue up or while away time waiting for your number to be called up.

Given the convenience of online transactions, the Employees Provident Fund (EPF) has introduced “e-Pengeluaran”, a newly-enhanced e-withdrawal facility through which members can submit applications for withdrawal of funds from their EPF Account 2 (which houses 30% of your total fund).

The facility is only applicable to members with i-Akaun, which is an online account accessible through the EPF website.

With e-Pengeluaran, members can reduce or redeem their housing loan balance, get reimbursement for their monthly loan instalment amount paid, purchase or build new house and withdraw their savings for education purposes.

EPF plans to introduce a health withdrawal scheme (via the online facility) by mid year.

To be eligible to make housing withdrawals, the contributor must be the buyer of the property. They are required to serve as the borrower of the housing loan from financial institutions participating in e-Pengeluaran. Banks offering the facility include RHB Bank, Maybank, Bank Islam, Bank Simpanan Nasional, OCBC, Arab-Malaysian Bank (AMBank) and CIMB.

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‘Applications for e-Pengeluaran can be processed upon receiving the thumbprint verification at an EPF branch,’ says EPF Withdrawal Operation Management department head Zalikar Yusoff.

EPF Withdrawal Operation Management department head Zalikar Yusoff encourages EPF members to try out e-Pengeluaran, which is a fast and convenient way for contributors to submit their housing or education withdrawal applications.

“With e-Pengeluaran members need not have to make a personal visit to an EPF branch to submit their withdrawal application form. It saves time and the hassle of undergoing the same procedure at our offices,” said Zalikar during an interview in Kuala Lumpur recently.

Zalikar said e-Pengeluaran was introduced in 2013 to cope with the growing number of EPF withdrawals. With the online scheme, EPF and banks can help reduce turnaround time for processing applications.

“Using e-Pengeluaran, EPF aims to expedite its resource-intensive transactions with partners. Through links between EPF’s IT network and business partner/ partners such as banks, universities and hospitals, members can submit their applications anytime, anywhere; they are also able to check their withdrawal eligibility status online.”

Zalikar said a total of 2.3 million applications were made in 2016 for all types of withdrawal.

Since deployment of e-Pengeluaran until Dec 31 2016, EPF had approved 33,364 and 87,047 applications for housing and education respectively.

“In 2015, EPF received 2 million withdrawal applications – that’s a 15% increase within a year.”

Concerning safety issues, Zalikar assures that the online withdrawal scheme is safe and efficient. It comprises five steps – e-submission of withdrawal application form, e-confirmation from accredited business partners, e-process upon thumbprint verification at EPF counter, e-payment where money is directly credited into a member’s housing loan and e-communication through which members will be notified by SMS and i-Akaun inbox messaging.

“Applications can be processed upon receiving thumbprint verification at an EPF branch,” said Zalikar, adding that it takes less than five days to process a housing loan withdrawal application.

EPF is collaborating with RHB Bank for three types of withdrawals – monthly instalments for housing loan withdrawals, to reduce or redeem housing loan withdrawals and purchase or build a new house.

RHB Bank Berhad group retail banking executive director U Chen Hock said the bank has received positive response from customers since EPF launched the facility.

“Through the scheme, those with housing loans can draw down the balance to reduce their housing loan.”

He said more customers (with RHB housing loan accounts) are drawn towards the facility due to convenience.

“The process is seamless and all steps – right from the application to processing – are done electronically. The only time members have to walk in is to put in their thumb print for verification. Once the application is approved, members will receive updates through their banking statements,” said U, adding it takes only three working days for RHB to transfer funds into the housing loan account.

Here’s how e-Pengeluaran works. Members fill up a withdrawal application via their i-Akaun. Within a day, EPF will have the information from RHB to process. Within 14 days, members are required to visit the nearest EPF counter for thumbprint verification. Once approved, EPF will liaise with RHB regarding the transaction. The bank has three days to transfer the money into the housing loan account.

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RHB Bank Berhad group retail banking executive director U Chen Hock says e-Pengeluaran is seamless, convenient and fast. Photo: The Star/M. Azhar Arif

A complete e-Pengeluaran application will be processed and payment will be made within 15 working days.

U explained 88% of RHB’s housing loan customers pay monthly instalments for their housing loans. Only 12% of customers pay down or redeem their loan.

“Judging from figures, it appears more of the younger generation of EPF members are applying for e-Pengeluaran from their Account 2 savings to pay down the monthly loan commitment. The older people might think it makes more sense to park their money in EPF as the dividend payout is higher. The younger ones need money to reduce loan commitment on a monthly basis,” he said, adding EPF members need to inform EPF should they choose to terminate the transaction.

At RHB banks, there are officers available to educate customers on the scheme’s benefits. To enable customers to register for i-Akaun accounts, EPF has set up kiosks at RHB banks too.

“Some customers aren’t aware of e-Pengeluaran or i-Akaun. Our officers are at hand to educate members about these facilities, especially those wanting to settle their monthly housing loans.”

To register for i-Akaun, members need to obtain an activation code by contacting the EPF Call Centre at 03-8922 6000, or visit an EPF kiosk or any EPF branch. i-Akaun is also accessible via the myEPF website and the “EPF i-Akaun” mobile app. The app, available for smartphones and tablets with Google Android and Apple iOS, makes checking one’s EPF statement faster and convenient.

For more details, go to www.kwsp.gov.my