Where Does Our EPF Money Go?

loading

EPF contributions from employees and employers come close to RM$5bil per month. That is no small sum. Penang Monthly explores where this money goes.

Most of the 1.4 million civil servants in Malaysia can expect a monthly pension, which is called a defined benefit. Those in the private sector, on the other hand, are entitled to a defined contribution in the form of a lump sum of savings from a pension fund.

There are three pension funds representing the wage-earning labour force in Malaysia: the Employees Provident Fund (the EPF), the Retirement Fund Incorporated (better known by its Malay acronym,

KWAP1) and the Armed Forces Pension Fund Board (or its Malay acronym, LTAT).

The EPF is easily the largest of the three. It is the oldest and has the largest number of members.


To read the rest of the article and to access our e-Archive, subscribe to us for RM150 a year.



Related Articles

UTTER ECONOMICS
Sep 2015

Winners and losers as the Ringgit falls

Who stands to gain or lose from our sliding Ringgit?

UTTER ECONOMICS
Mar 2013

Surviving G4's Crisis Measures

How will the G4’s new economic policies affect Malaysia, and how can we avoid making the same mistakes?

UTTER ECONOMICS
Dec 2014

Will the 50% stamp duty cut make a real difference?

Beginning January 1, a new policy will come in place to ease the rakyat's burden. But how much will the 50% rebate on stamp duty help first-time house buyers?

UTTER ECONOMICS
Oct 2011

Manning The State Government

The implementation of minimum wage may not have much of an impact on income distribution, but are wages reflecting productivity?