In a highly anticipated move, the Employees Provident Fund (EPF) has finally introduced the Account 3, which is an additional account to the existing Account 1 and 2 that all EPF members currently have.
This means that members will now have the following accounts: Account 1 (Akaun Persaraan for retirement savings), Account 2 (Akaun Sejahtera for withdrawals for education, health and housing expenses, and Account 3 (Akaun Fleksibel for emergency withdrawals).
Before the arrival of Account 3, 70% of every members’ monthly contribution would be funneled into Account 1, which cannot be used until retirement, while the remaining 30% goes into Account 2.
But with Account 3 now in the mix, the monthly contribution will be split three ways: 75% into Account 1, 15% into Account 2 and 10% into Account 3, reported NST.
More details about Account 3
In a statement by EPF chief executive officer Ahmad Zulqarnain Onn, he said EPF members below the age of 55 will have their balances in Account 1 and Account 2 remain the same, while Account 3 will begin with a zero balance effective May 11.
He added that the main aim of restructuring the current EPF account system is to “empower members in making decisions to balance future needs for retirement between short-, medium-, and long-term financial needs”.
This initiative will also help increase members’ retirement savings so that they will have sufficient retirement income to sustain their needs after retirement.
“The restructuring exercise is aimed at enhancing members’ retirement income security while at the same time addressing their current life cycle needs,” he said as quoted by Scoop.
Opt-in option available
Ahmad Zulqarnain added that EPF members are also given an opt-in option from May 11 to Aug 31 to transfer some of their savings balance in their Akaun Sejahtera (Account 2) as an initial amount to Akaun Fleksibel (Account 3).
The purpose of members being given the opt-in option for an initial amount transfer to Akaun Fleksibel is to enable them to make withdrawals from Akaun Fleksibel without having to wait for new contributions.
“Akaun Fleksibel is aimed at meeting members’ short-term needs and members can withdraw a minimum amount of RM50 from this account at at any time for any purpose,” he explained.
Should one want to withdraw from their Akaun Fleksibel (Account 3), they can file an application via EPF i-Akaun or at any EPF branches nationwide, where members can gain full access to the system on May 12.
They can also visit nearby EPF branches, the EPF official website or log in to EPF i-Akaun.
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