Akaun Emas to keep withdrawal choices

What say you on the issue below?

PETALING JAYA: The Employees Provident Fund has said that Akaun Emas will not affect all other existing schemes, where members have the option to make full or partial withdrawals upon reaching 55.

The partial withdrawal at age 50 also stays.

Here is a list of Frequently Asked Questions to help readers better understand the new schemes and its impact on their contributions.

1. I am 56 now. Will I continue to get dividends in my existing EPF account (Akaun 55) along with the new Akaun Emas next year?

Members will continue to earn dividends in both Akaun Emas and the balance in Akaun 55.

2. Will there be special dividends for Akaun Emas?

There will be no difference in the annual dividend payout percentage between both accounts to be fair to all EPF members.

3. I am 45 this year. How will this change affect me?

Contributions in Account 1 and Account 2 will not be affected and your contributions will continue to be split between these two accounts.

Members can still make withdrawals from Account 2 subject to eligibility.

4. What are Account 1 and Account 2?

Your EPF savings are split into two accounts. Seventy per cent of contributions goes into Account 1 and 30% goes into Account 2.

5. Can I make withdrawals from Account 1?

Yes, but only when you reach 55.

6. Can I make more withdrawals from Account 2.You can withdraw for the existing pre-retirement schemes such as for housing, education, health, after age 50 and to perform the haj.

7. I am 55 this year. How will this affect me?

Contributions from Account 1 and 2 will be transferred to Akaun 55 for members who have reached 55 and above starting Jan 1, 2017.

After the transfer to Akaun 55, withdrawals can be made subject to current eligibility and procedures.

Any further contribution (from Jan 1, 2017) will be parked under the new Akaun Emas.

There will be no pre-retirement withdrawals from Akaun Emas.

Accumulated contributions in Akaun Emas can only be withdrawn at age 60.

8. I will be 58 years old on Jan 1, 2017. Can I still withdraw my EPF savings?

Akaun Emas will not be applied retrospectively. Anything contributed up to Dec 31, 2016 will remain in Akaun 55 and members are allowed to make full withdrawals.

Any further contributions from Age 58 to 60 will be parked in Akaun Emas and can only be withdrawnat the age of 60.

9. Members who are aged 60.

Balances in Akaun 55 and Akaun Emas will be combined.

10. What’s the purpose of two accounts when eventually it’s going to combine at age 60?

Following the Members Consultation Exercise last year, a total of 94% of respondents overwhelmingly agreed for the EPF to maintain the Age 55 withdrawal, with new contributions from age 55 to 60 to be locked in until age 60, hence the introduction of Akaun Emas.

11. If a person is still working at 58 and becomes terminally ill, can he withdraw from Akaun Emas?

Yes, under the Incapacitation Withdrawal scheme.