Effective 1 November 2007, EPF under its ”Beyond Savings” strategic initiative has introduced various enhancements to member’s benefit structure in stages. These enhancements are in accordance to the EPF Act 1991 (Amendment 2007) . One of the enhancements is the introduction of the basic savings concept that will be used to determine the minimum sum a member is allowed to withdraw from Account 1 for Investment Withdrawal.

Definition of Basic Savings
Basic Savings is an amount to be put aside in Account 1 progressively at various pre-determined age levels to enable a member to accumulate a minimum savings of RM120,000  at age 55.
 
A member needs to have a basic savings amount at the predetermined age levels. Amount in excess of the basic savings can be invested in products offered by external fund managers approved by the Ministry of Finance.

Conditions For Investment Withdrawal

• Effective 1 February 2008, members can invest not more than 20% of their credit in excess of Basic Savings in Account 1  in products through approved external fund managers.
• The minimum amount of savings that can be withdrawn is RM 1,000 and can be made at intervals of three months from the date of the last transfer, subject to the availability of the Basic Savings required in Account 1.
• There are no other changes in conditions for the  Member’s Investment Withdrawal.
• Please refer to the Appendix for the Basic Savings Table and examples of allowable withdrawal for the Member’s Investment Withdrawal.
  

Required Basic Savings In Account 1

Age  (Years)	Basic Savings (RM)	Age (Years)	Basic Saving  (RM)
18	1,000	37	34,000
19	2,000	38	37,000
20	3,000	39	41,000
21	4,000	40	44,000
22	5,000	41	48,000
23	7,000	42	51,000
24	8,000	43	55,000
25	9,000	44	59,000
26	11,000	45	64,000
27	12,000	46	68,000
28	14,000	47	73,000
29	16,000	48	78,000
30	18,000	49	84,000
31	20,000	50	90,000
32	22,000	51	96,000
33	24,000	52	102,000
34	26,000	53	109,000
35	29,000	54	116,000
36	32,000	55	120,000

Some Examples To Compute The Allowable Investment Amount

Member	Age	Savings In Account 1  (RM)	Basic Savings (RM)	Computation: Savings In Account 1- Basic Savings x 20%	Member's Eligibility
A	22	4,000	5,000	-	Not qualified as the savings is lesser than the basic savings required.
B	22	8,000	5,000	(8,000 - 5,000) x 20% = RM600	Not qualified as the savings is lesser than required minimum investment amount of RM 1,000.
C	25	20,000	9,000	(20,000 - 9,000) x 20% = RM2,200	Qualified as the savings is more than the basic savings and minimum limit.
D	40	40,000	44,000	-	Not qualified as the savings is lesser than the basic savings required.
E	45	100,000	64,000	(100,000 - 64,000) x 20% = RM7,200	Qualified as the savings is  more than the basic savings and minimum limit.

 
Enquiry

It is important for you to furnish your full current address in EPF Forms when submitting your applications. Should there be any change to the given address after you made your submission, you must notify the nearest EPF office immediately. Again, this would avoid unnecessary delays in processing your application.

If you have any enquiries or require further information about investment withdrawals, please contact:

• Nearest EPF office
• EPF Call Management Centre at 03-8922 6000

Please quote your EPF number or your Identification Card number and the type of withdrawal that you have applied for when you contact the EPF. You may also visit EPF’s website to obtain further information about EPF withdrawals.