Govt mulls new EPF scheme to ensure steady income post-retirement

New Straits Times

5 days ago

KUALA LUMPUR: The government is considering implementing a monthly pension scheme under the Employees Provident Fund (EPF) as part of its efforts to ensure a steady income after retirement.
According to the 13th Malaysia Plan, the government is exploring a more effective mechanism to ensure a steady stream of income after retirement, recognising that sufficient retirement savings are crucial for safeguarding the well-being of workers in their later years.
"This mechanism will allow for the separation of contributions to the EPF into two components: retirement savings and retirement pension.
"Through this initiative, workers will be able to withdraw a portion of their savings while also receiving a monthly pension upon reaching retirement age," the report said.
The report said social protection for all types of workers will be enhanced to ensure broader coverage, including safeguards against job loss and workplace accidents.
It added that dedicated legislation will be introduced for gig workers to protect their welfare, including ensuring their right to a safe, healthy and supportive working environment.
Additionally, the report noted that protection against occupational hazards will be expanded to include accidents that occur outside of working hours and are not work-related.
"Rehabilitation and recovery services under the Social Security Organisation will be expanded to ensure that workers involved in accidents receive the necessary treatment and are able to return to work," it said.
The report said initiatives that emphasise a balance between work and life will continue to be expanded to improve workers' well-being.
"Flexible work arrangements that allow employees to align their work schedules with personal life needs will continue to be encouraged," it added, noting that this approach will also help reduce psychosocial risks, enhance employee productivity, and support workforce retention in the more secure formal sector.