KUALA LUMPUR: The Employees Provident Fund (EPF) implemented a number of initiatives throughout 2019 in its effort to boost members’ savings and ensure stable and consistent long-term returns.
In a statement today, the pension fund said in the first quarter (1Q), it lowered the minimum statutory rate contribution by employers for employees aged 60 and above to 4% from 6% monthly, while such employees would no longer have to contribute the usual share of 5.5%.
Also in 1Q, the EPF announced that it had outsourced RM117.56 bil to external fund managers as of Dec 31, 2018, an increase of 2.62% over the same period in 2017.
In the second quarter, it signed the United Nations-supported Principles for Responsible Investment to implement best practices in investing as well as environment, social and governance while protecting members’ interests in the long term.
In the third quarter (3Q), the EPF reported total investment income of RM12.32 bil for the second quarter, down RM700 mil from the RM12.39 bil recorded a year earlier.
Also in 3Q, the fund launched i-Invest to provide more investment options for members. To this end, EPF members could invest a portion of their Account 1 savings in unit trust funds offered by EPF-approved fund management institutions.
In the fourth quarter, several initiatives involving the EPF were announced in the 2020 Budget, including flexibility for members to withdraw their savings for education, from the certificate level upwards. Members could also withdraw from their Account 2 for sub fertility treatment.
In the same quarter, the fund struck an agreement with South Korea’s National Pension Service on best practices in social protection and knowledge sharing in pension system management. – Jan 7, 2020 Bernama
