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EMPLOYEES FROVIDENT FUND. TIPS OF THE DAY. Believe in yourself. What others think won’t matter. OBJECTIVES. Membership of EPF EPF Accounts Contribution Benefits Penalties. MEMBERSHIP. Employer’s responsibility to register you with the epf within 7 days of employment

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Presentation Transcript

Tips of the day
TIPS OF THE DAY..

  • Believe in yourself.

    What others think won’t matter


Objectives
OBJECTIVES

  • Membership of EPF

  • EPF Accounts

  • Contribution

  • Benefits

  • Penalties


Membership
MEMBERSHIP

  • Employer’s responsibility to register you with the epf within 7 days of employment

  • Remind your employer, register by yourself, lodge a complaint

  • Failure (employer) not exceeding RM10,000 or imprisonment not more than 3 years or both


Saving account
SAVING ACCOUNT

  • Acc I – 70% of monthly contribution – retirement

    • Withdraw age of 55

    • Invest part of savings

  • Acc II – 30% of monthly contribution – early preparations for a comfortable retirement

    • Attaining the age of 50

    • Owning a house – down payment for 1st house

    • Settling the balance of housing loan – 1st house

    • Financing education for member & their children

    • Medical expenses for members and their children


SAVING ACCOUNT

  • Implication to

  • Contributors

  • Government

  • economy

  • Employee – 11% or 9%

  • Employer – 12%


Who are liable to contribute
WHO ARE LIABLE TO CONTRIBUTE

  • Employees who are Malaysian citizens

  • Employees who are not Malaysian citizens but are permanent residents of Malaysia

  • Employees who are not Malaysian citizens but have elected to contribute before 1 August 1998

  • 1st week on the 1st month in which he is paying wages


Benefits
BENEFITS

  • Attaining age 50 years withdrawal

  • Attaining age of retirement withdrawal

  • Withdrawal to purchase house

  • Incapacitation withdrawal

  • Leaving the country withdrawal

  • Health withdrawal

  • Education withdrawal

  • Pensionable employees withdrawal

  • Optional retirement withdrawal

  • Member’s saving investment withdrawal

  • Withdrawal of savings of more that 1 million

  • Death withdrawal

  • Housing loan monthly installment withdrawal


Withdrawal scheme
withdrawal scheme

  • Retirement Withdrawal Scheme

    • Monthly Payment Scheme

    • Retirement Periodical Payment Withdrawal Scheme

    • Annual Dividend Withdrawal Scheme

    • Age 55 Years Withdrawal Scheme

    • Age 50 Years Withdrawal Scheme


Cont..

  • Housing Withdrawal Scheme

  • To Reduce/Redeem The Housing Loan Withdrawal Scheme

  • To Purchase/Build A House Withdrawal Scheme


Cont..

  • Other Withdrawal Scheme

  • EPF Member's Investment Scheme

  • Pensioners Withdrawal Scheme

  • Pensionable Employees Withdrawal Scheme

  • Members/Members' Children Education Withdrawal Scheme

  • Health Withdrawal Scheme

  • Leaving Country Withdrawal Scheme

  • Incapacitation Withdrawal Scheme

  • Death Withdrawal Scheme


Members members s children education withdrawal scheme
MEMBERS/MEMBERS’S CHILDREN EDUCATION WITHDRAWAL SCHEME

  • MEMBERS/MEMBERS’S CHILDREN EDUCATION WITHDRAWAL SCHEME

  • EPF members are qualified to apply for this scheme if:

    The member or member’s children have registered and paid the registration fees to enroll as a student for any academic/professional/vocational programs with any higher learning institution either locally or abroad. This withdrawal can be used to pursue one of the following programs namely; Diploma, Advance Diploma, Bachelor Degree, Post Graduate Diploma, Masters Degree, Phd or any of the equivalents; or

    Terms & conditionsYou are qualified to apply for this scheme if you or your children do not receive any full scholarship from any organizations.


Health withdrawal scheme
HEALTH WITHDRAWAL SCHEME

  • HEALTH WITHDRAWAL SCHEME

  • This scheme allows EPF members to withdraw their savings from Account III to meet the medical expenses for the treatment of critical illnesses for themselves and their family approved by the EPF. EPF members can cover the following family members under this scheme :

    • Member's spouse

    • Member's children/step-children/legally adopted children

    • Member's parents/parents-in-law/step-parents

    • Member's siblings


Health withdrawal scheme1
HEALTH WITHDRAWAL SCHEME…..

  • Withdrawal EligibilityMembers can apply for withdrawal under this scheme on the following conditions :


Health withdrawal scheme2
HEALTH WITHDRAWAL SCHEME…..

(A)Members or their family stated above are suffering from critical illness approved by the EPF Board as follows :

  • Major organ transplant

  • Coronary bypass surgery

  • Heart Valve Replacement

  • Surgery to aorta

  • Multiple sclerosis

  • Stroke

  • Meningitis and encephalitis

  • Coma

  • Cancer and benign brain tumor

  • Serious accident injuries

  • Congenital heart disease

  • Congestive heart failure

  • Chronic renal failure including haemodialysis


Health withdrawal scheme3
HEALTH WITHDRAWAL SCHEME…..

  • Other critical illnesses that are not listed above can be referred to the EPF for consideration.

    (B) Members or their family wish to cover the cost of purchasing medical aid or supply of prosthetic body parts such as wheelchair, prosthetic leg and other supplies approved by the EPF Board.

    (C) Members can also make joint withdrawal with other family members stated above to cover the medical expenses (subject to the total cost of medical treatment).

    (D) For joint withdrawal, the EPF will firstly process application from the first applicant and followed by application from other members (subject to the total cost of medical treatment).


Health withdrawal scheme4
HEALTH WITHDRAWAL SCHEME…..

  • Members are not eligible to apply under this withdrawal scheme if :

    • The cost of medical treatment is fully sponsored by members' employer.


Health withdrawal scheme5
HEALTH WITHDRAWAL SCHEME…..

  • Amount Eligible For Withdrawal

  • Members can withdraw their savings as follows, whichever is lower :

  • All savings in Account IIIORActual cost of medical treatment.


Health withdrawal scheme6
HEALTH WITHDRAWAL SCHEME…..

  • If the cost of treatment is partially sponsored by members' employer, the amount of savings that can be withdrawn is as follows, whichever is lower :

    All savings in Account IIIORThe cost of medical treatment which is not sponsored by the employer.


Health withdrawal scheme7
HEALTH WITHDRAWAL SCHEME…..

  • For joint applications, the amount of savings that can be withdrawn is as follows, whichever is lower :

    Total savings in Account III for all applicantsORThe actual cost of medical treatment.

  • If members' savings in Account III is not sufficient to cover the cost of medical treatment, members can apply to withdraw their savings in Account II to meet the medical expenses needed.


Incapacitation withdrawal scheme
INCAPACITATION WITHDRAWAL SCHEME

This scheme enables EPF members to withdraw all their savings if they become physically or mentally incapacitated to continue to work to lessen the burden of members concerned.


Incapacitation withdrawal scheme1
INCAPACITATION WITHDRAWAL SCHEME…..

TERMS AND CONDITIONSWithdrawal Eligibility

  • Members are no longer employed at the time application is made.

  • Members are confirmed to become physically or mentally incapacitated to work by the doctor who examined them.

  • Members are medically boarded out by their employer.

  • Members are medically boarded out and they receive Invalidity Pension Scheme from SOCSO.

  • However, members are not eligible to apply if :

    • Members have reached the age of 55 years and above. Members are advised to apply withdrawal under Age 55 Years, Periodical Payment or Annual Dividend Withdrawal Scheme.


Incapacitation withdrawal scheme2
INCAPACITATION WITHDRAWAL SCHEME…..

HOW TO APPLY

  • Medical report

  • Relevant documents (ic/resignation termination letter/passport/saving account book)

    INCAPACITATION BENEFITS (RM5,000 for once)


Death withdrawal scheme
DEATH WITHDRAWAL SCHEME

  • This scheme allows members' nominees/executor/administrator/nearest next-of-kin to withdraw the members' EPF savings in the event of members' death.


Death withdrawal scheme1
DEATH WITHDRAWAL SCHEME…..

  • TERMS AND CONDITIONSWithdrawal EligibilityClaimants can withdraw the deceased member's savings under this scheme if :

    • The claimant is the person nominated by the deceased member to receive his/her savings; or

    • If the deceased member did not nominate any beneficiary, the claimant is the executor appointed/the member's nearest next-of-kin.

    • If the deceased member did not make any nomination, the following has the right to claim the member's savings (according to priority) :


Death withdrawal scheme2
DEATH WITHDRAWAL SCHEME…..

  • If the deceased member did not make any nomination, the following has the right to claim the member's savings (according to priority) :

  • If the deceased member is married :

    • Administrator/executor appointed

    • Member's spouse

    • Member's children or their guardians

    • Member's parents

    • Member's siblings

    • Anyone who is deemed acceptable by the EPF has the right to receive the member's savings.


Death withdrawal scheme3
DEATH WITHDRAWAL SCHEME…..

  • If the deceased member is single :

    • Administrator/executor appointed

    • Member's parents

    • Member's siblings

    • Anyone who is deemed acceptable by the EPF has the right to receive the member's savings.


Death withdrawal scheme4
DEATH WITHDRAWAL SCHEME…..

How To Apply

- EPF Savings With Nomination

Has reached age of 18

  • EPF Savings Without Nomination

    The member's nearest next-of-kin such as widow/widower, children, parents and siblings can apply to withdraw the member's savings.


Death withdrawal scheme5
DEATH WITHDRAWAL SCHEME…..

  • PAYMENT OF WITHDRAWAL

    • For members who have made nomination, lump sum payment of members' entire savings will be paid to the nominee/nominees.

    • For members who did not make any nomination, payment will be made to the members' next-of-kin/dependent who, in the opinion of the EPF, is beneficially entitled to receive the estate of the deceased member, subject to the amount of members' savings as follows :


Death withdrawal scheme6
DEATH WITHDRAWAL SCHEME…..

  • RM2,500.00 and below

    • Full amount will be paid to the member's next-of-kin immediately after application is received.

  • RM20,00.00 and below

    • First payment amounting to RM2,500.00 is made immediately after application is received.

    • The balance is processed after two months from the date of member's death.


Death withdrawal scheme7
DEATH WITHDRAWAL SCHEME…..

  • Exceeds RM20,000.00

    • First payment amounting to RM2,500.00 is made immediately after application is received.

    • Second payment (not exceeding RM17,500.00) is processed after two months from the date of member's death.

    • The balance is paid upon producing the Letter of Administration/Grant of Probate/Distribution Order.


Death withdrawal scheme8
DEATH WITHDRAWAL SCHEME…..

  • However, if the Letter of Administration/Grant of Probate/Distribution Order is presented at the point of withdrawal application, payment will be made to the persons/administrators concerned accordingly.


Death benefit
DEATH BENEFIT

  • The dependent of a deceased member is entitle to receive the Death Benefit if the deceased member has not reached 55 years of age at the time withdrawal application is received by the EPF. The Death Benefit will be paid to one of the following dependents of the member :

    • Member's widow or widower; or

    • Member's children; or

    • Member's parents.


Death benefit1
DEATH BENEFIT…..

  • To enable this Death Benefit to be paid, applicants are required to complete Form KWSP 21 together with the original document and photocopy of the following documents :

    • Applicant's Identification Card; and

    • Proof of relationship between the applicant and the deceased member such as Marriage Certificate and Birth Certificate.


Offences penalties
OFFENCES & PENALTIES

  • Fraud in withdrawal to buy/build house :

  • General – Section 60 EPF Act 1991

    • RM2,000/

    • imprisoned up to 6 months/both

  • Fraudulent :

    • RM10,000/

    • imprisoned up to 3 years/

    • both

  • General penalty :

  • General – Section 60 EPF Act 1991

    • fine RM2,000 &

    • imprisonment n.e. 6 months or

    • both


Offences penalties1
OFFENCES & PENALTIES

  • Fail to register with Board :

  • Section 41 (1) EPF Act 1991

    • RM10,000 –

    • n.e. 3 yrs –

    • both

  • Fails to pay contribution within such period : pay accrued dividend:

  • Section 43 (2) EPF Act 1991

    • RM10,000 –

    • n.e. 3 yrs –

    • both

  • Deduct the wages : not pay to EPF

  • Section 48 (3) EPF Act 1991

    • imprisonment 6 yrs –

    • RM20,000 –

    • both.


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