Tuesday, July 17, 2012

Full EPF withdrawal only at 60

From The Star..

The age for full withdrawal from the Employees Provident Fund (EPF) by contributors will be raised to 60 years and partial withdrawal to 55.

The planned amendment to the Employees Provident Fund (EPF) Act 1991 follows the passing of the Minimum Retirement Age Bill 2012 in Parliament last month which extends the minimum retirement age for private sector employees from 55 to 60.

“It is a consequential move. Once we raise the minimum retirement age, we have to raise the age of EPF withdrawal as well,” said Deputy Finance Minister Datuk Donald Lim Siang Chai.

He said the decision had been made and it was only a matter of time before the amendment would come into effect.

Currently, contributors can make partial EPF withdrawal at 50 and full withdrawal of their savings upon retirement at 55.

However, Lim said they were 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.

More: The Star..Full EPF withdrawal at 60

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