Wednesday, 17 June 2009

KWSP withdrawal scheme


The Kota Kinabalu Memberof Parliament Dr. Hiew King Cheu asked the Minister of Finance in Parliament and received a written reply on the question of the withdrawal of EPF money on retirement age, and he asked whether the decision not to allow one-go withdrawal be stopped and to follow the old system of withdrawal.

The EPF had introduced a more flexible system of money withdrawal starting from 1st November 2007 when contributors reached the age of 55, where one can choose from the following alternatives:-

(1) withdraw 100% in lump-sum at one-go, this original method of payment is still in use,
(2) withdraw at any time, with a minimum of RM 2,000 per withdrawal for every 30 days,
(3) withdraw the deposit at a fixed-monthly basis, with a minimum of RM 250 per month not less than 12 month at one-go, and the person must have at least RM 3,000 in the account, and
(4) the combination of withdrawal scheme (2) and (3) as above can also be used.

The various schemes allow the EPF contributors more chose on the withdrawal of their money. This will enable them to manage their spending and financial needs, for the contributors who wish to keep their deposit with the EPF until the age of 75. With this method their contribution can be saved for a longer period and received more interest and dividends if the money is still with EPF.

Dr. Hiew viewed the proposal on the withdrawal scheme may not work for all for (2) and (3), especially with the process on approving the withdrawal in monthly and split payments. There are many procedures to go through before approval, and it is tedious for the applicant. The work load for the EPF will be very high, if many choose to use monthly withdrawal or the combination of both. The proposal to leave the money with EPF until 75, is also not viable. The whole proposal seems aiming at discouraging the EPF contributors not to withdrawal their money from their account when reaching retirement age of 55. The primary objective of the EPF fund is for the purpose of saving money for their retirement, but why restrict the withdrawal by the contributors, let them decide on how their money is to be spent. Is the money with EPF being utilized some way else, and they can not make payment if every one wanted to withdraw their money?

It is wise to do away with the installment and the split payment scheme, and only use the old system as item (1), one-go withdrawal.


Dr. Hiew King Cheu. KK MP

公积金局的提钱计划
亚庇国会议员邱庆洲博士收到财政部长的书面回答,有关民众在退休年龄提出他们的公积金的问题,邱博士询问当局是否决定取消分期提款并遵循旧的制度方式提款。

公积金局已经在零七年十一月一日提出了一个更有弹性的提款制度,当缴纳者达到55岁后,可以选择以下的提款方式: -

(一)100 %提款一次过提款,最初的付款方式是仍然在使用,
(二)任何时间都可以提款,每三十天最低的提款额约马币两千,
(三)固定每月提款方式,每月最低马币两百五十并且不少于十二个月,此外,必须至少有马币三千在户口里,
(四)提款方式(二)及(三)可以如上述同时的使用。

以上的各种题款计划让公众有更多的选择提出他们的公积金。 这将使他们能够管理财务上开支和需要,缴纳者可以把他们的钱存公积金局直至75岁。 如果把钱仍然存放在公积金局,缴纳者可以把钱存放更久,同时也可以得到更多的利息和分红。

邱博士认为,所建议的提款计划不能适应第(二)项及(三)项的方式 ,特别是在审批的过程中核准每月的提款及分期提款。 在批准前必须经过许多程序,让提款申请人感到麻烦。 而且也加重了公积金局员工工作,如果大部分的公众选择每月提款方式或两者兼之。 那么该提案把钱存在公积金局,直到75岁也行不通了。 整个提案似乎都旨在劝阻缴纳者纵然到达五十五岁的退休年龄,也不要提回他们帐户里的钱。公积金局的首要目的是帮助公众积存他们的退休金,但为什么要限制缴纳者的提款? 让他们决定他们的钱是如何被使用。 是否该局里存放的钱被使用在其他地方了? 是否如果每个人都希望提款其钱时,该局无法付款?

如今最明智的做法就是取消分期付款和分期缴款计划,只使用旧的制度就是第一项,一次过提款。