All EPF contributions to go into Account 1 to increase savings

All Employees Provident Fund (EPF) commitments will, for the time being, go into Account 1 to renew the investment funds of individuals, particularly of the people who have removed assets to pad the effect of Covid-19.

Representative money serve Mohd Shahar Abdullah said RM101 billion had been removed from EPF by individuals under I-Lestari, I-Sinar and I-Citra, some portion of the public authority’s improvement bundles.

He said all new commitments would be credited to Account 1 until the sum that was removed had been supplanted.

“From that point onward, we will return to the past process for saving 70% in Account 1 and 30% in Account 2,” he said in the Dewan Rakyat.

Cash in Account 1 must be removed upon retirement while cash in Account 2 can be removed, liable to conditions, for lodging, training and clinical costs.

Shahar was answering to an extra inquiry from Che Abdullah Mat Nawi (PAS-Tumpat) who, noticing the billions “cleared out” from the EPF, asked what estimates the public authority was taking to build investment funds in Account 1.

Prior, Shahar let the House know that different apportions were being conveyed to guarantee retirement reserve funds were expanded.

The actions incorporate permitting individuals to make month to month withdrawals so they can appreciate profits on their investment funds, and managers being needed to contribute 4% of the month to month compensation of those over 60.

There were likewise deliberate commitment and protection plans to shield their relatives from basic disease and passing, he added.

To an inquiry from Hassan Karim (PH-Pasir Gudang) concerning whether the huge total removed altogether would influence ventures and profits during the current year, Shahar said it would not affect speculations.

With respect to for EPF individuals, he said profits during the current year would be declared one year from now.

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