Account 3 - All contributors will have their savings distributed between three accounts. The percentage of contribution that goes into the first account, to be renamed “Persaraan”, will now be 75 per cent, five higher than under the replaced system. Fifteen per cent of savings will then go into the “Sejahtera” account. The remaining portion will go into the third and new account, dubbed “Fleksibel”. This account will be the portion of savings that contributors can withdraw from.
How does it work - All contributors can withdraw from the Fleksibel account which will start with zero balance. However, contributors will be given a one-time option to “front-load” some of their account 2 savings into the third account. Those who want to front-load will see a third of the 30 per cent savings they currently have in account 2 credited into the Fleksibel account, while a sixth of it will be credited into the Persaraan account.
Contributors withdrawal - Funds credited into the third account with the option to withdraw. Application to front-load can either be done on the EPF smartphone application or at any EPF branch offices.
Conditions to withdraw - No. Those with more than RM3,000 in their Sejahtera account will have RM1,000 credited into their Fleksibel account once they choose to front-load, while contributors with less than RM3,000 in the Sejahtera account will still have a minimum of RM1,000 wired into the third account. The lowest withdrawal amount permitted is RM50, and can be withdrawn anytime. Any contributor age 55 and below will have until August 31 to decide if they’d want to front-load or not.
Dividend rate - Any withdrawals will affect the dividend rate similar to the previous system. The more a contributor withdraws, the lower the rate. Inversely, this means a contributor’s dividend rate will not be affected if the contributor keeps his or her Fleksibel account untouched, even after they opted in to front-load.
Implications - The fund projected some RM25 billion would be withdrawn in the initial three-month offer period, while the monthly withdrawals after the front-loading phase would be around RM4 billion to RM5 billion.
How does it work - All contributors can withdraw from the Fleksibel account which will start with zero balance. However, contributors will be given a one-time option to “front-load” some of their account 2 savings into the third account. Those who want to front-load will see a third of the 30 per cent savings they currently have in account 2 credited into the Fleksibel account, while a sixth of it will be credited into the Persaraan account.
Contributors withdrawal - Funds credited into the third account with the option to withdraw. Application to front-load can either be done on the EPF smartphone application or at any EPF branch offices.
Conditions to withdraw - No. Those with more than RM3,000 in their Sejahtera account will have RM1,000 credited into their Fleksibel account once they choose to front-load, while contributors with less than RM3,000 in the Sejahtera account will still have a minimum of RM1,000 wired into the third account. The lowest withdrawal amount permitted is RM50, and can be withdrawn anytime. Any contributor age 55 and below will have until August 31 to decide if they’d want to front-load or not.
Dividend rate - Any withdrawals will affect the dividend rate similar to the previous system. The more a contributor withdraws, the lower the rate. Inversely, this means a contributor’s dividend rate will not be affected if the contributor keeps his or her Fleksibel account untouched, even after they opted in to front-load.
Implications - The fund projected some RM25 billion would be withdrawn in the initial three-month offer period, while the monthly withdrawals after the front-loading phase would be around RM4 billion to RM5 billion.
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