The Employees Provident Fund (EPF) is introducing a new transfer option for members who do not want to use the newly created Account 3, or Akaun Fleksibel.
Members can soon apply the recurring request function to transfer 10% of their Accont 3 (Akaun Fleksibel) balance back to Account 1 (Akaun Persaraan) or Account 2 (Akaun Sejahtera), said Balqais Yusof, EPF’s Head of Policy and Strategy Department during an interview with BFM.
She also shared in the interview that the details on how members can submit this application online will be announced in June or July this year.
EFP: More flexible options for EPF account 3
On May 11, the EPF introduced the Akaun Fleksibel, dividing member savings into the Akaun Persaraan (75%), Akaun Sejahtera (15%), and Akuan Fleksibel (10%) for all EPF members under the age of 55.
Balqais explained that 75% of members’ savings are allocated to Account 1.
If members prefer not to contribute to Account 3, they can submit a recurring request to transfer monthly contributions to Account 1, increasing its savings rate from 75% to 85%.
Alternatively, members who find it difficult to access their Account 1 funds can transfer the initial funds from Account 3 to Account 2 too.
They can also request monthly contributions to be transferred to Account 2, increasing its savings rate from 15% to 25%.
Balkis mentioned that members could also split the 10% Account 3 funds into two 5% portions, transferring them to both the Account 1 and Account 2.
EPF: We respect members’ choice
She emphasized that the EPF respects members’ choices and will not deny the transfer of funds from the Account 3 to Account 1 or Account 2.
Balqais highlighted that while Account 3 offers convenience, members might regret transferring funds if they face emergencies later and cannot access needed funds.
“Members wouldn’t like to be in such a situation, right?”
“Some members may turn to loan sharks, credit cards, or family for help, which can lead to a vicious cycle of high-interest debt. The Akaun Fleksibel aims to prevent such situations,” she added.