EPF Act to be amended, full withdrawal at age 60

The qualification age for a full withdrawal from the Employees Provident Fund (EPF) has been raised from 55 to 60 years to mirror the newly raised retirement age.

The Star today quotes Deputy Finance Minister Donald Lim Siang Chai as saying the decision has been made and it was only "a matter of time" before the change would take effect.

"It is a consequential move. Once we raise the minimum retirement age, we have to raise the age of EPF withdrawal as well," Lim is quoted as saying.

The move to amend the EPF Act 1991 follows the passing of the Minimum Retirement Age Bill 2012 in Parliament last month.

BN leaders, including MCA president Dr Chua Soi Lek, have been urging the government to retain the option for a full EPF withdrawal at age 55 despite the new retirement age of 60.

However, Lim in the report adds that the new withdrawal age will only be implemented after a "transition period".

"We have not finalised the transition period, but it will be between three to five years," he is quoted as saying.

Malaysian Trade Union Congress (MTUC) secretary-general Abdul Halim Mansor is quoted as saying in the same report that MTUC was in the dark about the planned EPF Act amendment.

"We have not been involved in any discussion regarding raising the age of EPF withdrawal or any other amendment to the Act," Halim is quoted as saying.

However, he adds that he is in favour of the move as EPF funds are meant to be used after retirement.