Dap Mp Urges Putrajaya To Rethink New Epf Mechanism Plan


 


PARLIAMENT | A Pakatan Harapan representative has urged Putrajaya to rethink its plan to introduce a new payout system for the Employees Provident Fund (EPF).
Cha Kee Chin (Harapan-Rasah) said the idea being proposed under the 13th Malaysia Plan (13MP) has received strong pushback from the rakyat.
"(The new mechanism) means that contributors who reach their retirement age would not be able to withdraw their EPF savings in full.
"I would like to appeal to the government to review this. Because as we all know, EPF is workers' savings for old age.
"But what is the meaning of retirement savings if the contributors cannot withdraw their money when they retire? Might as well change its name," he told the Dewan Rakyat while debating the 13MP bill.
Keep existing system
The Negeri Sembilan DAP secretary said he had met many people who raised their concerns about the new EPF plan since Prime Minister Anwar Ibrahim tabled the proposal two weeks ago.
"I would like to openly ask the government here to maintain the system where contributors reserve the right to choose between withdrawing all their savings or keeping them in EPF."
Under the 13MP proposal, the government listed the new mechanism plan as part of its B2 strategy on reforming the labour market.
Rasah MP Cha Kee ChinAiming at improving workers’ welfare, it intends to split the EPF contributions into two components, namely retirement savings and retirement pension.
Deputy Finance Minister Lim Hui Ying later said the proposed mechanism will not affect the existing members.
This is as it will only apply to new EPF members who register after the policy is implemented, she added. - Mkini


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