EPF - 1Malaysia Retirement Savings Scheme

EPF Rolls Out 1Malaysia Retirement Savings Scheme



Savings Earn Annual Dividends Plus 5% Contribution from Government

Commencing 3 January 2010, the self-employed such as farmers, fishermen and taxi drivers to petty traders and business owners, will have their worst fears on income inadequacy during retirement out-of-the-way when they take advantage of the Employees Provident Fund’s (EPF) latest offering – the 1Malaysia Retirement Savings Scheme.

Announced by the Prime Minister during the 2010 Budget tabling on October 2009, the 1Malaysia Retirement Savings Scheme takes on a socially responsible stance, caring for the welfare of all strata of the self-employed, a significant category of individuals who have no formal retirement savings scheme. It is designed to provide these individuals without a fixed monthly income with a degree of financial security in their old age.

“The Government is sensitive to the fact that adequate retirement savings remains a major concern for all Malaysians and in particular the self-employed, especially those without a fixed monthly salary. The 1Malaysia Retirement Savings Scheme offers this select group of contributors tremendous flexibility in determining how much they could afford to save for their retirement,” said Tan Sri Azlan Zainol, Chief Executive Officer of the EPF.

Unlike the conventional EPF savings scheme, the amount contributed into the 1Malaysia Retirement Savings Scheme is entirely at the contributor’s discretion.

“Contributors can opt to set aside a minimum of RM50 or a maximum of RM5,000 per month as their retirement savings. Contribution is voluntarily and contributors are also not required to contribute savings on a monthly basis but rather what and when they can afford to,” said Tan Sri Azlan.

“Nonetheless, members are encouraged to contribute a sum of money regularly, however small, into the retirement scheme as it is important to have discipline when saving for retirement.”

Savings under this scheme will receive annual dividends declared by the EPF, in addition to a 5 per cent contribution from the Government subjected to a maximum of RM60 per year over the next five years from 2010-2014.

The 1Malaysia Retirement Savings Scheme is open to a range of self-employed individuals such as hawkers, night market traders, real estate agents, freelancers such as disc jockeys and fitness instructors, singers and actors, and online business owners.

Those interested to apply for the scheme can fill in the KWSP 16G(1M) Form which is available at any EPF branches nationwide, or can be downloaded from this website from 3 January 2010 onwards. The forms are to be returned at any EPF branches or by mail.

However, any interested individual who is not yet an EPF member would need to register with the EPF first by completing KWSP 3 Form and submitting it to the EPF before applying for the scheme.

Savings for the scheme can be deposited via cash or cheque using the KWSP 6A(2) Form at any EPF Payment Counters nationwide.

Existing EPF members who turn self-employed are also eligible and may opt for this new scheme.

Savings under the scheme is eligible for withdrawals as governed by present EPF withdrawals’ procedures and conditions.

For more information, please click here or visit the nearest EPF branch or call EPF Call Centre at 03-8922 6000.

About the Employees Provident Fund (EPF)
The Employees Provident Fund (EPF) is Malaysia’s premier pension fund, providing basic financial security for retirement. The Fund is committed to preserving and growing the savings of its members in accordance with best practices in investment and corporate governance. It will always be guided by prudence in its investment decisions.As a customer-focused organization, the EPF delivers efficient and reliable services for the convenience of its members and registered employers. The EPF continues to play a catalytic role in the nation’s economic growth, consistent with its position as a leading savings institution in Malaysia.



Date: 22 December 2009
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Source: http://www.my-hut.com/default2.asp?tree=558
Source:http://www.my-hut.com.my/informationcentre
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