KUALA LUMPUR: In April 2024, Datuk Seri Ahmad Maslan announced the implementation of the third Employees’ Provident Fund (EPF) account, also known as the “flexible” account. The dividends for EPF accounts will be announced in February 2024, and the Finance Ministry will subsequently reveal a detailed plan on the flexible account.
“The relevant organizations can provide their feedback on the flexible account through the Finance Ministry and EPF,” stated the Deputy Finance Minister I at the 40th Asean Association of Social Security Directors Council Meeting (ASSA) on Monday (Nov 21).
ALSO READ: Govt should explain need for third EPF account, says Dr Wee
The third EPF account was announced by the Prime Minister in Budget 2024, and it will be implemented pending the establishment of guidelines to ensure it does not adversely affect people’s incomes and that withdrawals from the third account can only be made during emergencies.
“The specifics of what will be considered an emergency will be provided later. During Covid-19, RM145 billion was withdrawn through four withdrawals. Consequently, the government decided to disallow any further withdrawals,” Ahmad stated.
In July, it was reported that the EPF was considering the introduction of Account 3, which would allow savings withdrawals at any time.
ALSO READ: ‘Flexible account open to all’
This account would function like a savings account, with members being able to withdraw their savings whenever necessary, aligning with potential emergency cash needs.
The current EPF savings scheme structure for members under the age of 55 consists of Account 1 and Account 2, with a percentage rate of 70% and 30%, respectively.
