EPFWITHDRAWL, NOT 60, BUT 55

KOTA KINABALU : Sabah Progressive Party (SAPP) staged a peaceful demonstration in Gaya Street, on last Sunday, to caution the Government against any attempts to amend the Employees Provident Fund (EPF) Act, to restrict its contributors to withdraw their savings at the age of 60, instead of 55.

This was in response to the Human Resources Ministry tabling of the Minimum Retirement Age Bill 2012 at Parliament on last Wednesday, which would increase the retirement age of private sector employees from the current 55 to 60.

Its Women Chief Melanie Chia claimed that many concerned members of the public had conveyed their concerns that such a move could be a pretext for the Government to amend the Employees Provident Fund (EPF) Act later, to allow its contributors to withdraw their savings at the age of 60, instead of 55.

"Although the Government say you can work until 60, but not necessary that everybody can work until 60. Some people might work until 55 or less, depending on their health condition, and they might want to withdraw their EPF money.

"Hence, the people should be given the option whether they want to withdraw their money when they reach the age of 55. If the interest is good and it is safe, they can always leave their money in EPF, otherwise, they should have the option to withdraw their money when they reach 55," said Melanie who is also the Luyang State Assemblywoman.

The said Bill was read for the first time by Human Resources Minister Dr S Subramaniam.

However, Section 18 of the Act gives full power to the minister to decide whether to exempt any employers or class of employers from all or any provisions of the Act.

The new Bill also excludes workers who take up optional retirement and termination of service contract other than the age factor.

The minister would also be empowered to increase retirement age for private sector employees by mere notification via gazette, under Section 4 (2) of the Act.

However, the bill excludes, among others, those who are working on probationary term, domestic servants, non-citizen employees and those employed on fixed contract term which does not extend to more than 24 months.

Any employers found guilty to have forced their employees to retire below the age of 60 under the new Bill would be fined for up to RM10,000 if convicted.

Meanwhile, Chester Pang, the Coordinator for SAPP Kota Kinabalu youth who was also the Organising Chairman for the peaceful protest, noted that the public feedback gathered by the youth wing on the ground indicated that, while the public welcomed the extension of the retirement age from 55 to 60, they were nonetheless concerned with rife talks that such a move could be a pretext by the Government to later amend the EPF Act, to extend its withdrawal age to 60 instead of 55.

"There is a rife talk that the Government might want to use another RM1 billion of the EPF money to invest in the Malaysian Airlines bonds, which are quite a high risk," he said.

About 30 SAPP youth members participated in the peaceful demo. Also in attendance were SAPP deputy president Datuk Liew Teck Chan, SAPP KK youth chief John Stephen, its Luyang youth chief Yong Yit Yoong, Likas youth chief Woo Chun Voon, Inanam youth chief Joseph Thadius, and Tanjung Aru youth chief Alan Lum.