BORNEO SABAH ARAMAII

Tuesday, 14 August 2012

Age 60 withdrawal option after EPF Act amended next year

PUTRAJAYA: Starting next year, private sector employees who work until the extended retirement age of 60 will have the option to withdraw their Employees Provident Fund (EPF) savings at the same age.

An amendment to the EPF Act 1991 will be carried out to facilitate this regulation, Human Resources Minister Datuk Seri Dr S. Subramaniam said.

Under the amendment, the EPF will also compel those who work until the age of 60 to continue to contribute to their EPF savings throughout their term of employment.
The amendment is in line with the private sector Minimum Retirement Age Bill 2012, which was passed in Parliament in June.

The Bill stipulated that the minimum retirement age in the private sector be raised from 55 to 60 years old.
"The EPF, after deliberations with the ministry, has decided that a 30% EPF withdrawal can be made at age 50 and the remaining at 55 years old.
"But those who don't take out their savings at 55 can make the full withdrawal at 60 years of age," Dr Subramaniam said after chairing the National Labour Advisory Council meeting at the ministry here Tuesday.

The council is the highest national authority governing labour issues and convened for the third time this year Tuesday.

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