PETALING JAYA: The Employees Provident Fund’s (EPF) proposed shift to a monthly pension payout scheme will not affect the withdrawal rights of existing members, says Deputy Finance Minister Lim Hui Ying.
She said the new structure, if implemented, would only apply to new EPF contributors, while existing members could voluntarily switch to the new system.
Lim explained that the EPF’s proposed account restructuring was aimed at ensuring contributors have a more stable and sustainable income stream after retirement.
“Under the proposal, members’ savings would be divided into two components: one portion that can be withdrawn flexibly at any time, and another that would be paid out gradually over time until fully utilised,” she said in a Facebook post on Saturday (2 Aug),
Lim said that this was still an early-stage proposal and had not been finalised.
She stated that the Madani government remains committed to listening to public feedback and would conduct thorough engagement with stakeholders before making any decisions.
“The objective is to help Malaysians manage their retirement savings in a more structured, fair and sustainable manner,” she said.
Previously, the EPF said that any decision regarding the introduction of a monthly pension-style payout scheme would be made only after consultations with key stakeholders and evaluation of the long-term implications.
The proposal, which forms part of the government’s initiatives under the 13th Malaysia Plan (13MP), was still under review. In the interim, the EPF has confirmed that existing rules and withdrawal mechanisms remain unchanged.
