PETALING JAYA: Employees Provident Fund members who want to convert their conventional EPF savings to Simpanan Syariah can do so beginning today.
The EPF’s Simpanan Syariah, which will be launched in January, is now open to all members for registration at EPF branches nationwide.
EPF chief executive officer Datuk Shahril Ridza Ridzuan said that the choice to switch to Simpanan Syariah was entirely up to the members and advised members to fully understand syariah principles before deciding to switch from their current conventional EPF savings.
Members who wish to convert their conventional EPF savings to Simpanan Syariah will need to personally go to any EPF branch and bring along their MyKad to verify their thumbprint. Foreign nationals who are members should bring their passports.
“Today is a momentous milestone for EPF as we commence registration for Simpanan Syariah.
“We are pleased to finally be able to meet members’ demand following the overwhelming response during the Members’ Consultation exercise last year for a retirement savings option managed according to syariah principles,” Shahril Ridza said in a statement yesterday.
Simpanan Syariah has a fund size of RM100bil, which is equivalent to about 15% of the EPF’s total investment asset of RM681.71bil as of the end of March 2016.
It is available based on a first-come first-served basis. To be eligible for Simpanan Syariah 2017, members must submit their application by Dec 23 and are subject to the availability of the fund.
As for employers, the current contribution and enforcement processes remain the same.
There will be no changes or additional forms for employers to complete if their employees choose Simpanan Syariah.
It was previously reported that the scheme is an option with no turning back as once a member migrates his or her savings with the EPF to the new syariah-compliant investment scheme, he or she will not be allowed to switch back to the existing conventional scheme.
For more information on Simpanan Syariah, visit the EPF website at www.kwsp.gov.my or call the EPF Contact Management Centre at 03-89226000.