Chain Email On Dividends On Monthly Housing Withdrawals
Subject: Is it a SCAM by KWSP?
Remember during Budget 2008 announcement last yr, our Finance Minister cum PM) announced that in order to assist KWSP members to reduce the burden in housing load repayment, KWSP will allow monthly withdrawal from members’ A/C II for the purpose?
Sounds like a nice goodies!
When you apply for the monthly withdrawal, you only need to provide KWSP yr housing loan & installment details from yr bank and the bank a/c # you like KWSP to bank the monthly withdrawal into it. KWSP will approve yr application based on the available amt in yr A/C II and compute the withdrawal period by dividing the approved amt with the monthly installment amt.
Application process takes about a month and you will receive the monthly payout promptly into yr bank a/c!
Well everything appear to be nice and good. It was indeed a noble plan until you take to close look at yr KWSP Statement!
This is how the so-called KWSP SCAM works…….
Assuming you have RM100,000 in yr A/C II and yr housing loan’s monthly installment is RM2000/mth.
KWSP will approve yr application of withdrawal from yr A/C II of RM100,000 and pay you Rm2000/mth for the next 50 mths.
Everything appears to be in order BUT…….. What KWSP didn’t highlight to you is that when the application was approved, the TOTAL AMT (RM100,000) is removed from A/C II! It appears to be transferred to an unknown a/c to effect the monthly payment from therein..
The impact to the member are as follows :- 1. You just lost RM100,000 from yr A/C II. Assuming the KWSP Dividend is 5%, you will lose RM4,000 in dividend during the 1st year. Based on the above example you will lose RM10,000 over the 50 mths period!
2. There is no statement to account for the amt approved vs. amt paid, hence you would need to keep the monthly payment voucher to reconcile against the approved amt over the 50mths period to ensure there is no missing amt!
Assuming there are 100,000 members who innocently fell prey to this SCAM, based on the above example, KWSP would have cheated the members of 100,000 X RM10,000 = RM1,000,000,000 (that’s RM1 BILLION) over the period!
Furthermore, if you discovered this SCAM early and intend to stop the plan, KWSP would not allow any cancellation of the plan until at least 1 year. That would mean, once the application is approved, based on the above example, you would have lost RM4,000.
100,000 members would have lost 100,000 X RM4,000 = RM400,000,000(RM400 MILLION) in One Year!!!
If you’re a victim of this KWSP SCAM, would suggest you call yr MP to raise it up in Parliament!
For others who have not fallen into this SCAM, pls continue to watch out and alert yr family & friends about this.
HOW COULD THE GOVERNMENT ALLOW ITS AGENCY TASKED WITH SAFEGUARIDNG ITS CITIZEN’S HARD EARNED MONEY TO CHEAT ITS MEMBERS IN THIS MANNER???
The above email is untrue. The EPF has in fact issued a press statement regarding the issue in October 2008 as attached below.
EPF PAYS DIVIDENDS FOR SAVINGS RESERVED UNDER HOUSING LOAN MONTHLY INSTALMENT WITHDRAWAL
The Employees Provident Fund (EPF) would like to state that members’ savings that have been kept aside in a separate account for withdrawals under Housing Loan Monthly Instalment Withdrawal will continue to receive dividends accordingly. This statement comes in response to recent emails and blogs that state the EPF does not pay dividends on the said amount.
When a member’s application for Housing Loan Monthly Instalment Withdrawal is approved, the total amount of savings that will be taken out from Account 2 for the purpose of this withdrawal will be put aside in another account. The reason for this is to separate the amount from the main account, as funds allocated for this withdrawal cannot be used for other withdrawals from Account 2. In addition, it serves to facilitate as well as monitor the monthly payments.
The EPF would like to reiterate any savings that are still with the EPF will continue to earn dividends annually up until the member reaches the age of 75. Accordingly, the savings that have been kept aside and are committed for withdrawals under Housing Loan Monthly Instalment Withdrawal will continue to receive dividends for the year. The dividends on this amount will be credited into Account 2 after dividend for the year is declared.
In any case, the Housing Loan Monthly Instalment Withdrawal was introduced in January 2008 and as dividend for 2008 is yet to be declared, there is no issue of the EPF not paying dividends on the said amount.
We hope that this statement will put to rest any confusion regarding this issue. The EPF wishes to assure its members that it is committed to protecting members’ interests and enhancing the value of their savings.