3.4 mln EPF members transfer RM10.86 bln to flexible account as of June 10

KUALA LUMPUR (June 27): A total of 3.45 million or 26.6 per cent of Employees’ Provident Fund (EPF) members under the age of 55, have opted to transfer RM10.86 billion from their Sejahtera Account (Account 2) to the Flexible Account (Account 3) as of June 10, according to the Ministry of Finance (MoF).

In a Parliamentary written reply, the MoF stated that 2.93 million members have withdrawn RM6.98 billion from the Flexible Account, with an average withdrawal of RM2,382.

The MoF was responding to an enquiry from Datuk Seri Sh Mohmed Puzi Sh Ali (BN-Pekan) about the current statistics on withdrawals made by EPF members under the account restructuring scheme.

According to the MoF, most of these withdrawals can be accommodated by the EPF’s current cash balance, net cash inflows from contributions, maturities, and investment income.

Additionally, RM4.82 billion was transferred to members’ Retirement Accounts (Account 1), resulting in an increase of 39,000 members reaching a basic savings of RM240,000.

“To maintain the stability of members’ retirement savings, the Retirement Account has been further strengthened to increase members’ retirement savings,” the ministry said.

Starting May 11, 2024, the contribution ratio to the Retirement Account will increase by 5 per cent to 75 per cent.

“This initiative is not just the government’s response to current needs, but a proactive step to help people cope with the changing employment landscape, demographics, and life cycle needs of EPF members.

“With this initiative, the government strives to ensure that every EPF member can manage their finances with confidence and resilience in today’s dynamic and challenging environment,” the MoF added. — Bernama