Importance of EPF Essay

In general, the EPF Board may authorize the drug disengagement of the tenderness of money standing to the credit of a instalment, if it is satisfied that, The element has died, Has achieve the age of 55 yrs, Member is physically or mentally disenable from engaging in employment or The member non being a Malaysian citizen is about to leave Malaysia with no intention of returning. In partial masturbation, Ss. 54 EPF Board also may also authorize cover to hold partial add up standing to the credit of the member attained the age of 50 yrs, Has procured or built a shack, Has grease ones palmsd or built a mansion and has interpreted a impart make on the security of a charge on the star sign for its purchase or construction or Requires medical financing.In count I, it consists of 60% of all contributions for the purpose of retirement at the age of 55 yrs temporary hookup in account 2 it consists of 40% of all contributions for housing onanism or climb-down at the age o f 50 yrs. Under current Scheme of Withdrawal, Pre retirement consists trapping withdrawal scheme, Withdrawal upon reaching 50 yrs old and Medical withdrawal. Upon Retirement consists state of mattersman sum withdrawal, periodic withdrawal and withdraw a portion of the savings in a lump sum and the balance periodically. In withdrawal to purchase a house, this withdrawal allows you to withdraw your Account 2 savings to finance the purchase of a house.Withdrawal to purchase a number house is allowed after the setoff house is sold or governing of ownership of blank space has taken place. Disposal of ownership refers to loss of ownership of the first house strike through previous EPF withdrawal either due to auction, surrender of property by court order, transfer of ownership because of love and affection, destruction of house due to natural disaster, abandoned housing project or cancellation of purchase.The applications programme eligibility is either a Malaysian Citizen OR a Malaysian Citizen who has make Leaving the Country Withdrawal before 1 August 1995 and has opted to re-contribute to the EPF OR a Non-Malaysian Citizen who has become an EPF member before 1 August 1998 OR has obtained a Permanent Resident status (PR).The applicant have non reached 55 years of age at the time the EPF receivesyour application AND have at least RM500.00 of savings in Account 2.The applicant argon eligible to apply if buy or build a residential house (type bungalow / terrace / semi-detached / flat / condominium / studio apartment / service apartment / townhouse / SOHO) or a shop lot with residential unit. The purchase is financed through Housing loan from any of the institutions as follows pecuniary Institutions licensed under the swaning and Financial Institutions Act 1989 (BAFIA) Central / State organization or any other government financial agencies Members employersCooperatives / Cooperative Companies with license (approved by Malaysian Cooperative Commission, M inistry of Entrepreneur and Co-operative Development) accredited insurance companies approved by the Central curse of Malaysia Loan providers allowed by the EPFOR(ii) Cash purchase.You have signed the Sale and Purchase concordance of not more than three (3) years at the time your application is received by EPF. You have never do a Housing Withdrawal OR you have make a withdrawal to purchase your first house and have sold the house or disposal of ownership has taken place and subsequently buy a second house.Proof of trade / disposal of ownership of the first house essential be submitted. You intend to buy a house which has been acquired from a term of a contract with a view of purchase agreement from a party authoritative by EPF. You have bought a acres and built a house on the same land simultaneously (dates of the agreement to purchase the land and the agreement to construct the house must be within 6 months).You argon not eligible to apply if you Buy a land or a house lot only, Renovate, repair or do extra work to the existing house, Ownership of property is not via sale and purchase transaction, Have taken an overdraft loan, Buy a third house or Buy a house abroadYou can withdraw your savings as followsHOUSE PURCHASE OWNED BY separateJOINT PURCHASE WITH SPOUSE OR IMMEDIATE FAMILY MEMBER OR OTHER INDIVIDUAL The difference between the house price with the loan nub and an additional 10% of the house price OR alone your savings in Account 2.(Whichever is lower but not slight than RM500.00)The difference between the house price with the loan amount and an additional 10% of the house price ORAll the savings in each purchasers Account 2 subject to the upper limit amount eligible for withdrawal. (Whichever is lower but not less than RM500.00) c% HOUSING LOANPURCHASE WITHOUT LOAN / CASH PURCHASE10% of the house priceORAll your savings in Account 2.(Whichever is lower but not less than RM500.00)House price with an additional 10% of the house priceORAll y our savings in Account 2.(Whichever is lower but not less than RM500.00)You may need to decide on the amount to withdraw from your Account 2, subject to the level best amount eligible by filling in the desired amount in the Housing Withdrawal Form (KWSP 9C) (AHL).You may have made a housing withdrawal antecedently but have call off the purchase of the house. In this situation, the withdrawal amount need not be returned. The current eligible amount will be deducted from the amount previously withdrawn subject to the eligible balance (if any).Failure to Return the unfermented Amount for Withdrawal PurposeIf the applicant does not use the withdrawal payment for the purpose of the withdrawal is made, the applicant is considered as has committed an crime and shall, on conviction, be liable to imprisonment for a term not special six months or to a fine not stupendous RM2,000.00 or to both Section 58A,EPF Act 1991 (Amendment) 2007. Incorrect or False solvent or Furnishing False Doc umentsIf the applicant provides incorrect or false closure or furnishes false documents, the applicant is considered as has committed an offence and shall, on conviction, be liable to imprisonment for a term not majestic three years or to a fine not exceeding RM10,000.00 or to both Section 59, EPF Act 1991 (Amendment) 2007.Payment in MalaysiaAll withdrawal payments will be credited directly into your account subject to the pursuancea. You have an account with a panel strand appointed by EPF AND b. Your account is still active ANDc. Your believe account is a nest egg / Current Account (personal) OR Joint Account for withdrawal amount of more than RM100,000.00. d. Your identification number matches with the banks record. e. Payment is made in Ringgit Malaysia (RM).However, if the payment cannot be credited into members bank account due to causes such as bank account is not active or your identification number does not match with the banks record, payment will be made via bankers cheque.(ii) remittal of Payment to Foreign Countries Payment is made via Foreign Bank Draft. Types of currencies are as follows Foreign currency as per members prize declared in the application casting subject to the currency is accessible in EPFs list for the purpose of payment via Foreign Bank Draft ORIn US Dollar if the currency stated by the member in the withdrawal form is not acquirable in EPFs list for the purpose of payment via Foreign Bank DraftNoteEPF will make a verification with the member again if the type of currency chosen in the application form is not available in the allowed list or before changing the type of currency to US Dollar.