Now it is proposed that one is not able to withdraw their entire epf savings upon reaching 55. Is there a hidden agenda behind this or is it because the fund is not able to pay because of all the national service that it has to do or the highly questionable investments have all gone bad? We work till we are 55 and suddenly we are told that we do not know how to manage our own money once we reach 55. And these are the asses that made so much noise when singapore refused to allow early withdrawal by malaysians who have yet to reach 55.
It's a bit of a joke. They are concerned about people not being able to manage their money after 55. But what makes EPF think they are better at wealth management than the contributors! After all, the EPF board itself has been performing poorly over these last many years. Look at the rate of dividend return. It has consistenly been dropping until now it's only 4.25%. Close my eyes and I think I can outperform them anytime! 4.25 is really crap! Can hardly cover inflation.
I dont think they dare to implement this proposal !
I think it is so absurd that it is hideously wrong and unfair. I can say with such intensity because it is going to affect me real soon (I did say that I am an old man). If I cannot withdraw my money out at 55, it would probably mean that I would not live to see the rest of my money. I stress the word 'my' money. I want to retire at 55 and if I cannot withdraw my money to run a small business or to take a long deserved holiday with Mrs CHL, I think the whole argument of EPF is flawed. I just do not know what to say - for once I just do not know what to say. My health is not that good and EPF thinks that I should continue to work for people under extremely stressful conditions so that I can die before I reach 60? I could weep and I am sure there are many out there facing the same situation as I am facing now.
PS Osama - I am serious. Can the Opposition guarantee that it will not impose this new ruling? You have 2 votes. Mrs CHL and mine. Sorry. Make it 6 to include my parents and my two daughters. This will be the first time I am voting for the Opposition. I am sure our 6 votes may not count much but it is a matter of principle and to me, a matter of my life.
I think the idea now is to take whatever you can legally e.g. for repayment of housing loan, medical expenses, even buy unit trusts ( though I do not 'trust' how it operates ). At least it will be better than keeping it in an institution whereby rules are changed when it suits them or when the whole thing is so screwed up that it is not able to meet members withdrawals and schemes like these are hatched up to defer payments and we who have worked so hard for all our lives are denied the opportunity to reap the fruits of our labour. I do not want to be 80 (if I live that long) holding on to cash that i have no use for. How do you go for a tour/visit places that you have had always wanted when you are 80 ( no offence to those who are indeed 80) but to me doing those things at that age is meaningless. If I choose to leave it there there can be provisions for me to leave it there but for heaven's sake let it be our own choice. Some of us when we retire will probably be holding senior positions in organisations and controlling millions or even hundreds of millions of shareholder funds. Suddenly when we reach 55 we can't even decide for ourselves where to invest our epf money. And those statistics that they parade to say that so many percent of the populations will actually finish off their epf money within 3 years is a lot of bull ****e. No one believes those rubbish statistics anymore especially so when it is quoted by politicians.
Having said so much. It is obvious that whoever the ministry that takes care of this EPF stuff is no capable of handling finances. It is run like there is not capable ppl in M'sia that are capable to handle this ministry.
When the funds is not transparent enough this is what happens. Nothing to MALU about. If we are poor or not enough we have to spend less & not to borrow & spend lavishly & show-off to the world that we are okay. Every citizen has to bear the same AND equally.
The lamb excuse that it is for the good of the EPF members is unacceptable. Fishy, fishy.
The way the whole issue is handled goes to show the poor commercial judgment of the responsible party in the EPF.. Low commercial mentality typical of government servants who work on orders from the top. Tidak apa attitude.
The way they do things frighten me and I am sure many out there too.
The Chairman of the board should take full responsibility.
What is the Chairman going to tell us: the Stake holders! "No worry, we have the government backing". Crap! we heard this many times already and we are seeing our divident dwindling from 8.0% to 4.25% these few years.
We need a shake up in our public service. The government must start to look into who they employ to run the money the Rakyat put in their trust. Unlike in the 60s where top students went for the prestigious public service. Today, only the politically connected or the "nowhere else to go" find themselves employable in the government.
If you pay peanuts, you have monkey to do the job. If you pay millions, you have "penyagak" to leech the country dried. Get the professionals and pay them like one.
The Consumers Association of Subang and Shah Alam Selangor (CASSA) today called upon the Employees Provident Fund Board to revert to the contributors first before implementing their controversial proposal to prevent a lump sum payment of the contributor’s monies at the age of 55!
The board should be extremely vigilant and aware that EPF contributors are already an angry lot who have seen their dividends drop drastically over the last 22 years!
They are also aware of the controversial usage of EPF funds for alleged bailouts and for schemes that went against the ‘objectives and spirit” of the pension fund.
The present EPF board had failed miserably to protect the rights and interests of contributors and will fail again if they proceed with this proposal without a referendum from the contributors!
With the general elections ‘round the corner’ - it would be extremely foolish and imprudent to test the tolerance levels of the contributors.
If the EPF Board decides to go against the rights and interests of the contributors CASSA would initiate a multi prong legal action to test this decision in the country’s court of law and commence a nationwide signature campaign against this move!
It is time that transparency, accountability and good governance be the order of the day instead of what transpired in the past where state and pension funds were been used at the fancies and obsessions of a select few in political power!
I am certain Prime Minister Datuk Seri Abdullah Ahmad Badawi would not allow this to happen under his administration.
If The Star's report on EPF is accurate and true - and we have no reasons not to believe so - we now have a major crisis at hand.
I call on all of you to speak up and speak out!
Would you agree we are now being forced down the throat and to take it to mean that:
The EPF is anticipating great cash flow and liquidity problems which would actualise soon?
'Simpanan Masa Tua Anda' has now become 'Simpanan Arwah Anda'?
The EPF - and the government - can change rules to affect the majority just because minority contributors had screwed up their withdrawn savings upon retirement?
You have no say over your money you placed in trust with a fund manager whom you would normally fire if he under-performs?
If the government did not put the issue to rest by next week, I suggest you start considering the following actions, in the exact sequence:
Withdraw all your entitled portions to invest in EPF-approved unit trust funds or CF-ready properties of your choice - Do it tomorrow before the EPF closes the gate on you!
Petition the government to boot out EPF's CEO Azlan Mohd Zainol - formerly Arab-Malaysian Bank Bhd's managing director - and his entire management team for coming up with such bizzare idea. Give a January timeline.
Failing which, you boot out the present government that houses EPF come general election time.
Pak Lah's government, whose ministerial portfolio in treasury oversees EPF, is having a major credibility crisis and the PM should nib it in the bud.
EPF wants to play fire with the rakyat's savings! We have to say NO!
I am beyond 55 and I have taken out my money, the same day I reached 55. Money kept a day longer in epf may expose one to further unknown financial risks, which you never know. I am prudent in spending, and I think the reserve can last me longer than 3 years.
Now that Pak Lah says it is an individual's right to opt for total or partial withdrawal upon reaching 55, and I think this is at least a fair statement and reassurance from the PM. It is deduced that the EPF has not really referred this to the Boss (Finance Minister/PM) and simply comes out with the crap proposal. They are creating a lot of damages for the PM to be busy doing damage control.
The issue at hand is not whether Badawi backtracks on the epf action. In the first place the issue should not have arisen. Personally these types of decisions are not made by the epf board but rather by their 'political masters' and in this case could be a feeler sent out to detect the ground feeling. If there is no response then it would be quietly pushed through. If there is a negative response in this case, an immense wave of unpopular sentiments, the political masters will come out and say that after considering the rakyat's feelings, the garmen has u turned when it actual fact they were the ones behind it in the first instance. So the rakyat will come in and say what a caring garmen we have!!! I do not know why these people bother becoming a garmen servant when they have been doing so well in the private sector. Maybe the prospect of immense wealth is simply too great to resist. At the end of the day a person leave this world empty handed just as when they arrive in this world.
KUALA LUMPUR: The Employees Provident Fund said yesterday that any change to the EPF Act and its policies will have to be tabled by a Board Committee which has been set up for the purpose. Any proposal by this panel would be submitted to the EPF Board before it goes through other stages of approval, such as the Finance Ministry.
In a statement here, EPF chief executive officer Datuk Azlan Zainol assured contributors that the review was at the “thinking stage” and the status quo remained with regards to withdrawal schemes. He was commenting on the widespread dismay by contributors as well as unionists, social activists and politicians over a report in The Star on Saturday that EPF contributors would not be allowed to withdraw their savings in a lump sum on reaching the age of 55, under a proposal being worked out by the organisation.
Instead, the proposed scheme would allow these members to withdraw between 20% and 30% of their total savings, with the rest to be paid out in monthly instalments over 15 to 20 years, according to sources. Azlan said the EPF has embarked on a comprehensive review of its policies, processes and products to ensure they are as relevant to the needs of its 10.4 million members today as they were 52 years ago.
This involved the implementation of business process re-engineering and ICT strategies to make the EPF more customer-friendly and responsive. The review would also study all aspects of the EPF Act 1991, including members’ benefits.
Thinking Stage? People who cannot think that the money is not the Board should not be allowed to think. People who cannot even think should not be allowed to think. People who made erroneous 'investments' with contributors' money should be removed. After all in the private sector if you make erroneous 'investments' you are sacked from the company and court action could even be brought against you for negligence.
What do they mean we don't know how to manage our own money? My dad withdrew everything from EPF when he retired. After that, he financed the higher education of his youngest three kids overseas, one reaching his masters. All without any sponsorship (we were too stupid so cannot qualify :-)) And we did graduate and all are contributing to the economy. But that's another story.
His house is still his, and he has even managed to change cars a couple of time after retirement.
He did not start his own business.
Perhaps some ppl need to take a lesson from him on how to manage money (other people's money) - a result of blood, sweat and tears for many, many years.