Good news to all Malaysian citizens who are self-employed and individuals without monthly income to have a savings fund for the purpose of retirement. Our Prime Minister Datuk Seri Najib Tun Razak was announced 1Malaysia Retirement Savings Scheme in the 2010 Budget Session last year and the scheme is effective beginning 3 January 2010.
Purpose of 1 Malaysia Retirement Savings Scheme
The main purpose is to encourage the self-employed and those without fixed income to contribute voluntarily toward their retirement fund according to their affordability. Government Malaysia is aware that many self-employed group are lack of their own retirement savings scheme and Government is trying to help these people who falls under the self-employed or individuals without fixed income groups such as taxi drivers, petty traders, farmers, fishermen, hawkers, babysitter, business owners and freelancers.
Benefits of 1 Malaysia Retirement Savings Scheme
Since the scheme is initiated by Government Malaysia, you will receive yearly EPF dividend according to the rate declared by the EPF for the year. Additionally, the Government will contribute 5% for every RM100 contribute to the scheme subject to a maximum of RM 60 per year. Noted the government will contribute this amount for a period of 5 years from 2010 till 2014.
How to Apply for 1Malaysia Retirement Savings Scheme?
Firstly, you are self-employed individual and Malaysia Citizen. If you are not a EPF member yet, you need to register with EPF first by completing the KWSP 3 Form and submit it together with a copy of your MyKad at any EPF branches. Then, fill up the 1Malaysia Retirement Savings Scheme application form (KWSP 16G (1M)) and submit it to any EPF counters or mail it to them.
How to Make Contribution Payments to 1 Malaysia Retirement Savings Scheme?
You can make the contribution payments using 1Malaysia Retirement Savings Scheme Payment Form- KWSP 6A(2) and submit the payment form together with cash/cheque at any EPF counter. The minimum contribution amount is RM50 while the maximum amount is RM 5,000 a month.
How To Withdraw 1 Malaysia Retirement Savings?
1Malaysia Retirement Savings Scheme is part of EPF member’s savings. Therefore, you are allow to withdraw the savings based on current EPF withdrawals procedures and conditions.
Got more enquiries?
If you still having some questions to ask regarding 1Malaysia Retirement Savings Scheme, please visit any nearby KWSP/EPF Offices or contact EPF Call Management Centre. Tel: 03-89226000 or send an Enquiry form to EPF using contact form.