Bank union urges govt to return monies withdrawn from EPF under Covid relief

 

The National Union of Bank Employees (Nube) has urged the Employees’ Provident Fund (EPF) board to demand the government return the monies withdrawn by B40 and M40 members under the Covid-19 relief package.

The union said the main aim of EPF is to safeguard employees’ retirement savings but the erosion of savings in the statutory body shows the original goals of EPF have begun to shift.

“EPF board’s primary goal should be to protect employees’ retirement savings and not to please the government for their political mileage and irresponsible employers.

“The government must take full responsibility for the depression of wages in this country, as the government conspired with employers in wage depression since the 1980s,” union president J Solomon said in a statement today.

Solomon said instead of providing rebates and incentives during the Covid-19 pandemic, the government made workers withdraw from their savings to boost the economy through programmes like i-Lestari, i-Sinar, and i-Citra.

In the end, EPF members had withdrawn RM101 billion from their savings in total under the schemes.

“The ultimate beneficiaries of the three schemes are the government and the employers. The government prided that its stimulus package included RM101 billion when it is not from the government’s coffers but from the workers' retirement savings.

“However, the majority of the 7.4 million who withdrew are B40 and M40 members of the EPF. While these withdrawals are ploughed back to the economy and the business community benefited in a short term, the poor members’ retirement savings have depleted,” he said.

The union cited that some 6.1 million EPF contributors are now left with less than RM10,000 in savings, making them vulnerable and unprotected for their retirement.

Nube president J Solomon

It added that based on the minimum target of RM240,000 savings that EPF members should have upon reaching the age of 55, the common age of retirement, only 3 percent can afford retirement, and sustain it with their savings.

“Since it is the government which caused a huge decline in B40 and M40 workers retirement savings, through its stimulus package, it is only proper that the government replenishes monies withdrawn by these workers.

“The government need to find a mechanism for the replenishment for the protection of the contributors when they retire,” Solomon said.

He added that the government’s move to extend the period of reduction in the EPF contribution rate from 11 percent to 9 percent in the recent Budget 2022 announcement will further heighten the low retirement savings problem faced by workers.

Solomon urged the EPF board to ensure that EPF members’ monies are not used to invest directly or indirectly in businesses that exploit workers, promote union-busting or for political mileage.

“Every decision made by the EPF board must take into account its responsibility to sustain members’ funds for the contributor’s wellbeing for their old age as Malaysia will become an ageing nation by 2030.

“The EPF board needs to instil confidence in the members and not be used as a bailout for businesses or political parties’ enhancement under the expense of workers,” Solomon said. - Mkini