KUALA LUMPUR: The Worker’s Provident Fund (EPF) will place all contributions into Account 1 to be able to replenish the financial savings of its members who’ve withdrawn funds to climate the financial results of the Covid-19 pandemic.
Deputy Finance Minister Mohd Shahar Abdullah (BN-Paya Besar) mentioned a complete of RM101bil has been withdrawn beneath the i-Lestari, i-Sinar, and i-Citra stimulus packages for the reason that pandemic started final 12 months.
So as to replenish the quantity withdrawn by contributors, Shahar mentioned all new contributions will probably be credited into Account 1.
As soon as the quantity is replenished, Shahar mentioned EPF will return to its earlier system of 70% in Account 1 and 30% in Account 2.
Shahar was responding to Datuk Che Abdullah Mat Nawi (PN-Tumpat), who interjected and requested what measures the federal government was taking to extend financial savings in Account 1 of EPF contributors.
In the meantime, Shahar mentioned there have been a number of measures to make sure retirement financial savings don’t dwindle, amongst them a rule that permits members to make month-to-month withdrawals to allow them to take pleasure in dividends on their financial savings and employers being required to contribute 4% of the month-to-month wage of these above 60.
Hassan Karim (PH-Pasir Gudang) then stood up and requested if EPF’s funding portfolio had been affected by the RM101bil in withdrawals.
“It is not going to have an effect on EPF,” added Shahar.
“On dividends, it will likely be introduced subsequent 12 months by EPF and the federal government,” added Shahar.
Final Tuesday (Nov 16), it was reported that about 3.6 million EPF contributors have lower than RM1,000 of their respective accounts.
The Finance Ministry additionally mentioned dwindling EPF sayings is worrying among the many bumiputera, the place it’s estimated that 78% of the contributors have utilized to withdraw cash from their EPF financial savings.
Some 4.4 million or 54% of bumiputera contributors have lower than RM10,000 in financial savings, whereas two million of them or 54% have lower than RM1,000 in financial savings.