EPF for self employed - Is it effective?

There is no strict rule and it's up to the contributors whether to contribute on monthly basis or whatever they have... Even the current EPF average also depleted within 3 years after retirement, but I don't know what is the purpose of this.... "Buat Main-main and then tarik balik".... Looks like "Flip-Flop from previous regime is going to remain"....sigh....

http://thestar.com.my/news/story.asp?file=/2009/12/22/nation/20091222194927&sec=nation

Published: Tuesday December 22, 2009 MYT 7:45:00 PM - The Star
EPF rolls out 1Malaysia retirement scheme for self-employed

KUALA LUMPUR: The Employees Provident Fund (EPF) will launch the 1Malaysia Retirement Saving Scheme on Jan 3 next year to help the self-employed cope with income inadequacy during retirement.

EPF chief executive officer Tan Sri Azlan Zainol said the scheme, announced by the Prime Minister during the tabling of the 2010 Budget in October, was to care for the welfare of all strata of the self-employed who had no formal retirement saving scheme.

It was designed to provide these individuals without a fixed monthly income with a degree of financial security in their old age, he said in a statement here Tuesday.

The scheme is open to self-employed individuals such as hawkers, night-market traders, real estate earl tate agents, freelancers like disc jockeys and fitness instructors, singers and actors and online business owners.

”The Government is sensitive to the fact that adequate retirement savings remains a major concern for all Malaysians and in particular the self-employed, especially those without a fixed monthly salary.

”The 1Malaysia Retirement Saving Scheme offers this select group of contributors tremendous flexibility in determining how much they could afford to save for their retirement,” he said.

Azlan said that unlike the conventional EPF saving scheme, the amount contributed into the 1Malaysia Retirement Saving Scheme was entirely at the contributor’s discretion.

”Contributors can opt to set aside a minimum of RM50 or a maximum of RM5,000 per month as their retirement savings. Contribution is voluntary and contributors are also not required to contribute savings on a monthly basis but rather what and when they can afford to.”

He said contribuotrs would receive annual dividends declared by the EPF, in addition to a 5% contribution from the Government subject to a maximum of RM60 per year over the next five years from 2010-2014.

Those interested to apply for the scheme can fill the KWSP 16G (1M) Form which is available at any EPF branch nationwide or download from the myEPF website at www.kwsp.gov.my from Jan 3 onwards. The forms are to be returned at any EPF branch or by mail.

However, individuals who are not EPF members have to register with the EPF first by completing KWSP 3 Form and submitting it to the EPF before applying for the scheme.

Existing EPF members, who turn self-employed, are also eligible and may opt for this new scheme.

Savings for the scheme can be deposited via cash or cheque using the KWSP 6A(2) Form at any EPF Payment Counter nationwide and withdrawals are governed by the present EPF withdrawal procedures and conditions.

Further information can be obtained by visiting the nearest EPF branch or EPF Call Centre at (03) 8922-6000 or the EPF website. -- Bernama