SHAH ALAM, March 1 — The Employees Provident Fund (EPF) is planning to launch a new scheme called i-Legasi, which will allow users to transfer some of their EPF savings to their children under certain conditions.
EPF CEO Ahmad Zulqarnain Onn said i-Legasi will allow EPF members to make “inter-generational transfers” of their savings to their children.
He did not specify a launch date, saying only that the scheme would be introduced “soon”.
Zulqarnain said the i-Legasi option will be available to members who are already eligible to withdraw from their EPF savings.
“If you are already able to withdraw the EPF and you are above Adequate Savings, then you can then transfer to your children,” he said at a media briefing at Menara KWSP here, adding that the children would not be able to withdraw the funds until they reach the eligible withdrawal age.
Currently, EPF members can fully withdraw their EPF savings at age 55, while those aged below 55 are not allowed to withdraw the bulk of their savings as these are meant for retirement.
EPF chief operations officer Sazaliza Zainuddin said the i-Legasi facility would allow members aged above 55 to add to their children’s EPF savings without being subject to the RM100,000 annual limit for voluntary top-ups.
“This is basically allowing those over 55, with balances exceeding adequate savings, to transfer part of their money to their children.
“So currently, if we want to top up any money for our children, we have to pay from our bank account. This facility allows members to transfer part of their savings to their children without the RM100,000 limit,” he explained.
Currently, under EPF’s Retirement Income Adequacy (RIA) Framework which serves as a guide for Malaysians to know how much they should have in savings for retirement, there are three tiers that EPF members can aim for by retirement age or by age 60:
- Basic Savings (RM390,000);
- Adequate Savings (RM650,000);
- Enhanced Savings (RM1.3 million).
