Importance of EPF Essay

In general, the EPF Board whitethorn authorize the eviscerateal of the sum of money standing to the credit of a ingredient, if it is satisfied that, The member has died, Has achieve the age of 55 yrs, Member is physically or mentally incapacitated from engaging in date or The member non being a Malaysian citizen is about to leave Malaysia with no object of returning. In partial directal, Ss. 54 EPF Board also may also authorize natural covering to withdraw partial add standing to the credit of the member attained the age of 50 yrs, Has corruptd or reinforced a house, Has purchased or built a house and has taken a loan do on the security of a charge on the house for its purchase or construction or Requires health check financing.In visor I, it consists of 60% of all contributions for the purpose of retirement at the age of 55 yrs sequence in flyer 2 it consists of 40% of all contributions for housing masturbation or withdrawal at the age of 50 yrs. Under Current Scheme of onanism, Pre retirement consists housing withdrawal scheme, Withdrawal upon make 50 yrs old and Medical withdrawal. Upon Retirement consists lump 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 second house is allowed after the first house is sold or electric pig of ownership of property has taken place. Disposal of ownership refers to loss of ownership of the first house own through previous EPF withdrawal either due to auction, surrender of property by court order, deepen of ownership because of love and affection, destruction of house due to natural disaster, abandoned housing project or cancellation of purchase.The application eligibility is either a Malaysian Citizen OR a Malaysian Citizen who has made Leaving the farming Withdrawal before 1 Augu st 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 applier let non reached 55 historic period of age at the time the EPF receivesyour application AND have at least RM500.00 of savings in Account 2.The applicant are eligible to apply if buy or build a residential house (type bungalow / terrace / semi-detached / apartment / condominium / studio apartment / service apartment / townhouse / SOHO) or a shop lot with residential unit. The purchase is financed through Housing loan from every of the institutions as follows Financial Institutions licensed under the Banking and Financial Institutions Act 1989 (BAFIA) Central / State government or any other government financial agencies Members employers co-ops / Cooperative Companies with license (approved by Malaysian Cooperative Commission, Ministry of Entrepreneur and Co-operative Development) Licensed insuran ce companies approved by the Central Bank of Malaysia Loan providers allowed by the EPFOR(ii) Cash purchase.You have signed the Sale and Purchase agreement of not more than three (3) years at the time your application is received by EPF. You have never made a Housing Withdrawal OR you have made 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 sale / disposal of ownership of the first house moldiness be submitted. You delimit to buy a house which has been acquired from a rental with a view of purchase agreement from a party authorised by EPF. You have bought a trim back 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 are not eligible to apply if you Buy a land or a house lot only, Renovate, repair or do supererogatory work to the be house, Ownership of property is not via sale and purchase transaction, Have taken an overdraft loan, Buy a ternion house or Buy a house abroadYou can withdraw your savings as followsHOUSE PURCHASE OWNED BY INDIVIDUALJOINT PURCHASE WITH SPOUSE OR speedy FAMILY MEMBER OR OTHER INDIVIDUAL The difference between the house expenditure with the loan tot and an additional 10% of the house price ORAll your savings in Account 2.(Whichever is trim down but not less(prenominal) 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 keep down to the maximum amount eligible for withdrawal. (Whichever is lower but not less than RM500.00)100% HOUSING LOANPURCHASE WITHOUT LOAN / CASH PURCHASE10% of the house priceORAll your savings in Account 2.(Whichever is lower but not less than RM500.00) family price with an additional 10% of the house priceORAll your savings in Account 2.(Whichever is lower but not less than RM50 0.00)You may choose to decide on the amount to withdraw from your Account 2, subject to the maximum amount eligible by filling in the desired amount in the Housing Withdrawal Form (KWSP 9C) (AHL).You may have made a housing withdrawal previously but have cancelled the purchase of the house. In this situation, the withdrawal amount need not be returned. The current eligible amount go forth be deducted from the amount previously withdrawn subject to the eligible balance (if any).Failure to Return the Unused 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 offence and shall, on conviction, be liable to imprisonment for a term not exceeding six months or to a fine not exceeding RM2,000.00 or to some(prenominal) Section 58A,EPF Act 1991 (Amendment) 2007. Incorrect or False declaration or Furnishing False DocumentsIf the applicant provides incorrect or false decla ration 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 exceeding 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 statement subject to the followinga. You have an account with a panel bank appointed by EPF AND b. Your account is still active ANDc. Your bank account is a Savings / Current Account (personal) OR voice Account for withdrawal amount of more than RM100,000.00. d. Your identification number luciferes 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 much(prenominal) 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) Remittance of Payment to unconnected Countries Payment is made via Foreign Bank Draft. Types of currencies are as follows Foreign funds as per members choice stated in the application form subject to the currency is on tap(predicate) 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 available 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.