There has been calls recently that the age of partial withdrawal for contributors to the EPF (Employees Provident Fund) to be raised to 55 years while the full withdrawal be available when the person reaches 60 years of age.
Hence, if that is to be implemented, the Employees Provident Fund (EPF) Act 1991 would need to be amended. According to Datuk Donald Lim Siang Chai, the Deputy Finance Minister, this follows the implementation of extended the minimum retirement age for people working in the private sector from 55 to 60. It was accorded through the passing of the Minimum Retirement Age Bill 2012 in late June.
At the moment, EPF contributors can make partial withdrawal from the EPF when they reached 50 years old while upon reaching 55, they are allowed full withdrawal. With the new proposal, those who have reached 55 would still be able to make their full withdrawals from EPF and there will be a window for them to do so.
The need to amend the act was also agreed by Datuk Seri Dr S Subramaniam, the Human Resources Minister who said that the extension of the minimum retirement age to 60 would also mean that the regulations of EPF and SOCSO (Social Security Organisation) would need to be changed respectively.
This came in light of reports that numerous EPF contributors were concerned that the passing of the new minimum retirement age law would hinder them from making full withdrawals upon reaching 55 years of age.
Therefore, Lim said that there would be a need to amend the Employee Provident Fund Act 1991 and this is being considered by the government. This is to ensure that the withdrawal procedures and any clauses involved would remain relevant in today’s environment and most importantly to align it with the new Minimum Retirement Age Bill 2012.
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