Wednesday, July 18, 2012

EPF withdrawal scare explained


"EPF wihdrawal stays at 55 even if the retirement age is extended to 60 years old." - Nik Effendi Nik Jaafar, EPF PR boss



The NST report today


Good for the New Straits Times for being quick correct the news that appeared in the Star quoting Donald Lim, the deputy MoF, that EPF contributors would have to wait till they are 60 to withdraw their EPF money (read full story here).  The news should have been big on Page 1 instead of buried in Page 11 but still, I am sure it is a big relief to many, including my good friend Outsyed the Box and his reader Mr Lee [EPF Withdrawal and Chinese Votes.]. And me.

Lessons? Politicians ought to check their facts before they open their mouth. Because not all journalists do. Last month Human Resources Minister S. Subramaniam had already made a statement that there would be NO change in the EPF withdrawal age despite the government's decision to raise the retirement age to 60. Donald,please  read the story here (published in the Star some more!).


The NST story:



EPF withdrawal remains at 55


THE Employees Provident Fund said the age for full withdrawal from the fund will remain at 55 although retirement age for private sector employees will be raised to 60 years, following the passing of the Minimum Retirement Age Bill 2012 last month.
EPF public relations manager Nik Effendi Nik Jaafar said after taking into consideration feedback from members, the government will not make any amendment at this point in time.
"EPF wihdrawal stays at 55 even if the retirement age is extended to 60 years old," Nik Effendi told the New Straits Times here yesterday.
Nik Effendi was commenting on a report in an English daily which quoted Deputy Finance Minister Datuk Donald Lim Siang Chai as saying the age for full withdrawal from the EPF by contributors will be raised to 60 years and partial withdrawal to 55.
"It is a consequential move. Once we raise the minimum retirement age, we have to raise the age of EPF withdrawal as well," Lim was quoted as saying.
Currently, contributors can make partial EPF withdrawal at 50 and full withdrawal of their savings upon retirement at 55.
However, Lim was reported as saying EPF was looking at providing a transition period for contributors who have already planned to withdraw their contributions within the next few years.
"We have not finalised the transition period, but it will be between three and five years," he said adding that during this period, contributors who reached the age of 55 could still make full withdrawals.
MTUC secretary-general Abdul Halim Mansor was quoted as saying the union was in the dark about the reported amendment to the Employees Provident Fund Act 1991 to raise the withdrawal age.

5 comments:

Anonymous said...

Donald quacks

Anonymous said...

EPF is now BROKE lah-- why withdrawal at 60 n not 55,, aiyoh-- lagi spinn

Mustapha Ong said...

Dear Bro,

Thanks for the highlight of this issue but I am wondering who is the boss, i.e the Deputy MOF or Head of EPF. Please do not confuse the rakyat as we have enough of this flip-flop syndrome all the time!Luckily Donald Lim is not the Minister of Finance!He is not even a follower as reflected in many of his statements, not representative of the MOF.

Anonymous said...

back to 55 is only damage control. Will be implemented after BN win GE13.

Anonymous said...

withdrawal at 60 u complain... retain at 55 damage control... lolz