THE proposed mandatory monthly withdrawal upon reaching the age of 55 will only apply to new members born in or after 2010, and those registered after the implementation date, the Employees Provident Fund (EPF) said today.

It said there is no change for the current lump sum withdrawals at age 55 and 60 for existing members.

“The first payout under the mandatory option is only expected to be made when these new members retire, some decades in the future,” EPF said in a statement.

The retirement fund also said the current members, who are outside the said category, could opt in to the monthly withdrawal option.

EPF said the proposal is still being refined. It assured that any decision on the monthly withdrawal option will only be made with careful consideration and alignment with the EPF’s commitment to the best future interests of its members.

It said the mandatory monthly withdrawal mechanism will bring Malaysia in line with widespread global practice, as the country remains one of the small minority that continues to allow lump sum withdrawals and not a regular payout.

Last week, Prime Minister Anwar Ibrahim said the government is finalising the details of the proposal to make it mandatory for retirees to make monthly EPF withdrawals when they reach the age of 55.

Anwar, who is also finance minister, said Putrajaya had no objection to the proposal, but it would depend on EPF’s capacity. However, he acknowledged that there was “some opposition” from contributors with small savings. – July 11, 2023.