KUALA LUMPUR: The proposed monthly pension-style payments for Employees Provident Fund (EPF) members will not affect the withdrawal rights of existing members, said Deputy Finance Minister Lim Hui Ying.
She clarified that the new mechanism, announced under the 13th Malaysia Plan (13MP), will apply only to new members registering after its implementation.
Existing members, however, may voluntarily opt in if they choose.
“The proposed restructuring of EPF accounts will introduce a new mechanism allowing part of members’ savings to be allocated specifically for regular income during retirement,” Lim told the Dewan Rakyat.
She was responding to a supplementary question from Mordi Bimol (PH-Mas Gading) regarding the rationale behind the monthly payout plan.
Lim explained that the new structure aims to ensure members’ savings last longer in retirement, aligning with increasing life expectancy.
Under the proposal, savings will be split into two components upon reaching the minimum retirement age.
Flexible savings can be withdrawn anytime based on members’ needs, while income savings will be disbursed monthly until fully utilised.
“This proposal aims to strengthen retirement income security and support more sustainable financial management,” she added.
The announcement follows Prime Minister Datuk Seri Anwar Ibrahim’s earlier disclosure of the plan under the 13MP. - Bernama
