KUALA LUMPUR, 21 November 2019: The Employees Provident Fund (EPF) today signed a Memorandum of Understanding (MoU) with the National Pension Service (NPS) of the Republic of Korea. This is part of EPF’s effort to gain access to the best practices in the area of social protection as well as encourage knowledge-sharing on pension system management.
EPF Chief Executive Officer Tunku Alizakri Alias said, “We are proud and delighted to establish this formal collaboration with the NPS. This partnership presents us an opportunity to tap into a reservoir of global experts and seek solutions from different perspectives.
“We are also humbled to share our unique Malaysian experience to give extra value to NPS in Korea’s social well-being landscape.”
Tunku Alizakri added that the EPF was eager to leverage on new skills and initiatives from its regional counterparts in addressing an ageing as well as a largely self-employed population, with the common goal of further developing and understanding the social security environment of the two countries.
The NPS, established in 1987, is one of the world’s largest pension funds with a total assets under management (AUM) of USD 600 billion and 21 million compulsory contributors in comparison with the EPF’s 14.5 million members (as at Oct 2019). NPS’ standing as a pension fund on the global stage allows the EPF to learn from the best, especially in light of challenging social issues and economic volatility.
The mutually-beneficial MoU formalises cooperation in training activities encapsulating the areas of pension policy and initiatives, research projects and sharing information on best practices.
The NPS offers four benefits for its members, namely old-age pensions, disability pensions, and survivor pensions, as well as lump-sum benefits in the form of a one-time payment. Managed by 7,482 staff, NPS’ retirement coverage mirrors the EPF’s model to include employees, employers and the self-employed.
“As Malaysia aspires towards developed nation status, we must look towards the best models to uncover new strategies in tackling social well-being issues such as the rise of the gig economy and an ageing population. This collaboration underlines our pro-active commitment to addressing issues related to the well-being of our members.
“At the heart of this MoU is the belief in the importance of collaboration and leveraging expertise with the aim of providing effective and efficient services for our members, helping them achieve a better future in the long-run.”
The MoU was signed during the EPF’s International Social Well-being Conference 2019 by Tunku Alizakri and NPS Chairman and Chief Executive Officer Sung Joo Kim, and witnessed by Minister of Finance Lim Guan Eng and EPF Chairman Tan Sri Samsudin Osman.
Issued by the EPF Media Desk
Corporate Affairs Department
21 November 2019