Answering All Your Qs About EPF's Account 3
The announcement by the Employees Provident Fund (EPF) regarding the restructuring of members’ accounts, aimed at bolstering income security post-retirement and addressing immediate needs, has raised a surge of questions from the public.
As announced by EPF, the three accounts are:
- Akaun Persaraan: Previously known as Account 1, serves as a repository for savings aimed at retirement.
- Akaun Sejahtera: Previously known as Account 2, designed to cater to various life cycle needs.
- Akaun Fleksibel: Provides flexibility for short-term financial needs. Savings in this
- account can be withdrawn at any time.
Is there a difference in the dividend rates between the tree accounts ?
No. The same dividend rate will apply to all three accounts. Currently, the EPF account restructuring will not change the existing policy on establishing dividend rates.
How will the new contributions be credited after the implementation date?
Starting from 11 May 2024, new contributions will be credited across your Akaun Persaraan, Akaun Sejahtera, and Akaun Fleksibel as follows:
When the account restructuring is implemented, existing balances in Account 1 and Account 2 will remain in Akaun Persaraan and Akaun Sejahtera, respectively. Meanwhile, Akaun Fleksibel will start with a zero balance
An example of the distribution of contributions are as illustrated below:
Between 12 May 2024, and 31 August 2024, members will have a one-time option to transfer part of their Akaun Sejahtera savings balance to Akaun Fleksibel as an initial amount, and this action cannot be cancelled once completed. The determination of this initial amount in Akaun Fleksibel depends on whether the savings balance in Akaun Sejahtera is below or above RM3,000 on the date the opt-in application is made.
Refer to the press release here for more details on the transfer method.
All Source from : https://www.kwsp.gov.my/