After a member applies for a Special Withdrawal, all monthly contributions made by the member will be credited to the first account until 120% of the withdrawal amount is filled.
According to the Employees Provident Fund (KWSP) Special Withdrawal website, after a member participates in the Special Withdrawal Scheme, the full amount of the member’s monthly EPF contributions will be deposited into the first account until the 120% withdrawal amount requested by the member is filled.
The EPF Board will give you an example to make it easier for you to understand: A member chooses to withdraw RM10,000, 20% of RM10,000 will be RM2,000 and the member’s monthly EPF contribution will be deposited into the first account first until the withdrawal amount of RM12,000 is filled, then the deposit will be made according to the existing ratio of 70% of the first account to 30% of the second account.
The reason why the EPF Board introduced the 120% deposit amount is to reduce the impact of withdrawals on pensions. Members will lose about 5% of their annual payout after participating in the SDR scheme and it will take 4 to 6 years for members to fill up the amount withdrawn.
Each EPF member will hold 2 EPF accounts, namely the First Account and the Second Account. The ratio of the first account to the second account is 70% to 30%. The savings in the first account can only be withdrawn after retirement, while the savings in the second account can be withdrawn when buying a house, paying education fees, paying medical bills, etc.
The EPF Special Withdrawal Scheme (Pengeluaran Khas) will be open for applications from April 1 to April 30, and members can check the results of their applications from April 9 and will receive their deposits in a lump sum from April 20. The application website for the CPF Special Withdrawal Scheme is https://pengeluarankhas.kwsp.gov.my/.
