Say, for instance EPF makes RM10 billion net profit (i.e. after accounting for all expenses) in 2011. EPF then declares x% dividend amounting to RM8 billion to all its contributors. That means there's excess of RM2 billion retained by EPF. Contributors get x% dividend + whatever they contributed. Now, we all know EPF's money (to fund managers, they will call it net assets value) belongs to all contributors. Also, EPF will not declare dividend in excess of its net profit, so a deficit will not arise.
Over the years, the excess of net profit over dividends declared (in this example RM2 billion a year, for 2011) might have been accumulated to a very significant amount.
Assuming today EPF is liquidated, I am sure the excess of liquidated amount over the amount payable to all contributors would be very very significant. Here's my Q - where has all the accumulated excess gone to and ultimately who will get this accumulated excess of net profits over dividend declared? Anyone has any clue and can share some thoughts?
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