There will be no more criteria for EPF members to fulfil in making a withdrawal from their Account 2 contribution to settle education loans.
Effective July 21, EPF members will be able to withdraw the amount they have in Account 2 under the Education Withdrawal facility to settle their education loans or education loans taken by their children, EPF deputy chief executive officer (Operations) Mohd Naim Daruwis said in a statement released by the retirement fund.
Previously, members could only withdraw their funds under the facility provided depending on the date on which the education loan was taken.
“The enhancement to the policy was done after taking into consideration the feedback from members who faced difficulties in reducing or settling their education loans using their EPF savings.“The EPF serves to create a positive member experience and we always strive to improve all areas that we can while delivering our mandate. We are pleased to note that the enhancement is expected to benefit up to 70,000 of our members who have yet to repay their education loans,” Naim said.
In another major development, EPF has also changed the rules for withdrawal applications from those who hit the age mark of 50, 55 and 60.
With immediate effect, members who are due for a partial or full withdrawal from their EPF accounts, upon hitting the three age milestones, will only be allowed to submit their withdrawal application one month before their birthdate. Previously, the submission could be made six months in advance.
“Before members make any withdrawals, we strongly encourage them to visit our retirement advisory services located in 18 branches throughout Malaysia to receive free advice on the best withdrawal option that fits their needs,” Naim said.
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