KUCHING: The proposal to extend the age for withdrawal of Employees Provident Fund (EPF) from the present 55 to 60 years has received flak from contributors.
While some said it was a “silly proposal” there were contributors who described the suggestion as “frustrating”, while others proposed that an acceptable mechanism be worked out.
On the other hand, Assistant Minister of Youth Development Datuk Abdul Karim Rahman Hamzah said he personally disagreed with the idea and was puzzled why someone came up with the ‘silly preposition’.
“I’m just puzzled who came up with this silly proposition…55 is a good age as that is the year of retirement and contributors can opt whether to take out their money in toto at that age or leave it in EPF to reap more dividends,” he said in his WhatsApp message yesterday.
He was commenting on the call by Malaysian Trade Unions Congress (MTUC) to support EPF’s retirement withdrawal age proposal.
Abdul Karim, who is also Assistant Minister of Housing and Asajaya assemblyman, urged MTUC not to “change the goal post” and frustrate contributors.
“Don’t frustrate contributors as those money kept in EPF are contributors’ money and all through the years of employment, the contributors had been contributing and maybe have specific plan on what to use with the money once they reach 55,” he asserted.
He believed that many contributors would be frustrated if the age limit was to be extended to 60 years.
“I’m among those who reached 55 this year and definitely will get insulted by a silly proposal like this,” he said.
Pending assemblywoman and state DAP organising secretary Violet Yong in a press conference at DAP headquarters yesterday said she had received several complaints against the proposal.
“Since the subject was raised, people (contributors) have been calling me and voicing out their strong disagreement,” she told the press conference.
Yong further said contributors had the right to make their own decision on how to spend the money like settling outstanding housing and car loans, or for their children to further their studies.
Semop assemblyman who is also chief political secretary to the chief minister, Abdullah Saidol, meanwhile opined that MTUC’s proposal and reasoning seemed to be reasonable.
He said he was sure that MTUC had carried out a sufficient study on the proposal.
“But EPF should also consider and come up with an acceptable mechanism to allow those who opted for early retirement to withdraw certain portion of their EPF savings for genuine purposes,” he said in his WhatsApp message.
A Bidayuh community leader for Kuching Division, Temenggong Austin Dimin Niyon, had mixed feelings on the proposal.
He said it would only be fair that those wanting to retire at 55 to withdraw their contribution at that age, and similarly for those who choose to retire at 60.
“The concern with EPF is the issue of employees not having enough money in EPF for them to go along in life,” he said.
An anonymous contributor, meanwhile, said it would be frustrating for him if the proposal becomes a policy, pointing out that it should be optional for the contributor to withdraw his EPF savings at 50 or 60.
Turning 55 next February and already having a plan on how to spend his total withdrawal, he said “The (EPF money) is our money and how we spend on what we plan is our own choice and right and they cannot stop us.”
MTUC Sarawak secretary Andrew Lo in a press statement reported yesterday said the qualifying age for retirement must move from 55 years to 60 years, otherwise it would defeat the very objective of EPF as savings for retirement and the move to increase the retirement age.
Among others, he also said increasing the retirement withdrawal age to 60 years was one way to allow contributors to build up sufficient retirement savings.
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