Flexible Changes To EPF Housing & Education Withdrawals
Members of the Employees Provident Fund (EPF) who intend to withdraw their savings to reduce or settle their housing loan or for further education now have more to smile about, following the approval given by the Minister of Finance to the EPF's proposal to implement some changes to the Housing and Education Withdrawals as part of the Fund's initiative to make withdrawals more flexible and customer-friendly. Under the Housing Withdrawal, members can now withdraw their Account II savings once every year to reduce or settle their housing loans. Withdrawals can be made annually from the last date of withdrawal, with a minimum amount of RM500. In addition, members are now given the flexibility to help their spouses reduce or settle their housing loans even if the member is not a joint owner, a requirement prior to this new amendment to the EPF's procedure. Some of the conditions for this withdrawal include that the member shall not be the borrower, the spouse is the purchaser and borrower of the housing loan, the property is mortgaged with the bank and proof of marriage. While under the Education Withdrawal, members are now allowed to withdraw their savings to fund tertiary education costs starting from Diploma level and above, for themselves as well as for their children. Prior to the changes, members were only allowed to withdraw their Account II savings once every three years to reduce or settle their housing loan. For Education Withdrawals, members were allowed to withdraw their savings to pay for Diploma courses for themselves, and only Degree courses and above for their children. "These changes are part of the EPF's initiative as a responsive organisation to implement more flexibility in our withdrawals," said Encik Nik Affendi Jaafar, Senior Public Relations Manager of the EPF. "The EPF is constantly studying the viability of our withdrawals and benefits to meet the changing and diverse needs of our 5.2 million active members. We are confident that these changes will be welcomed by members who are at important milestones of their lives, such as couples deciding to buy a house or parents getting ready to send their children off for further education," he added. About the Employees Provident Fund (EPF) The Employees Provident Fund (EPF) is a national savings scheme, 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 organisation, 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 socio-economic growth, consistent with its position as a leading savings institution in Malaysia. |
