KUALA LUMPUR (Aug 1): The Employees Provident Fund (EPF) said it is studying a proposed government plan to introduce a monthly pension payout, and that any decision will be subject to stakeholder consultations and consideration of members’ long-term interests.
In a statement issued on Friday (August 1), the EPF said it has taken note of the government’s consideration under the 13th Malaysia Plan to introduce the monthly pension payout scheme for its members.
Nonetheless, EPF said the current withdrawal rules and mechanism remain unchanged while the proposal is under review.
Any update on the matter will be communicated through official and timely channels, said the EPF.
Currently, all EPF members’ funds contributed before the age of 55 can be withdrawn in full upon one’s retirement age.
However, the government is considering introducing a monthly pension payout under the EPF to provide retirees with a more stable income stream, in addition to the current lump-sum withdrawal option, according to 13th Malaysia Plan report released Thursday.
Currently, EPF savings are divided across three accounts: Account 1 for retirement, Account 2 for selected pre-retirement needs, and Account 3 for flexible, short-term use.
The retirement fund has offered higher dividend returns among government-linked investment institutions in recent years, with a payout of 6.3% for both conventional and Shariah savings in 2024.
Other government-linked investment funds include Permodalan Nasional Bhd (PNB), which operates Amanah Saham Bumiputera (ASB) and Amanah Saham Nasional (ASN), and pilgrim fund Lembaga Tabung Haji.