75 Years and Above Still Receiving the Annual Dividend
On 21 September 2014, a daily newspaper reported 260,000 EPF accounts earn zero dividends. The news claims that EPF is not paying dividend for account holder who are more than 75 Years.
The news says, Employees Provident Fund (EPF) doesn’t pay dividends to their senior citizen account holders. If the EPF account holder is 75 and above, he or she will not enjoy the dividend payout which many are not aware of this policy.
The corporate affairs unit head Nik Affendi Jaafar has confirmed the existence of the no dividend payout policy for EPF account holder aged 75 and above. EPF has stopped the dividend payout since 2008 and there are about 260,000 account holders who are affected.
Several million Ringgits in EPF which belongs to senior citizen aged 75 and above has not been paid dividend and many don’t know this reality. It is known to all that the money in the fund is used for the nation’s development and it is not fair for the senior account holders if they don’t get their portion of the return.
EPF urged their contributors, not to keep their money in the fund after reaching the age of 75 and onwards. Nik Affendi Jaafar also mentioned that EPF contributions are meant to act as a retirement fund and not to use EPF as a savings account.
It was also mentioned that there are numerous cases where upon withdrawal of their lifetime savings, it is misused by their immediate family members or close to them. Hence, to prevent such circumstances, these senior citizens opt EPF to manage their funds.
In the event of withdrawal of their entire life saving, this situation will cause perplexity among the senior citizens as they are not exposed to various forms of investment in the current market. Thus, chances for mismanagement of funds or erroneous ventures could lead to adverse and torment.
However, EPF denies the statement and clarified that all contributions, including those aged 75 and above has been receiving the annual dividend. The policy was approved in 2008 has not been implemented. EPF also said it was informed the potential of the misinterperation and is in the final stages of amendment under the EPF Act 1991.