KUALA LUMPUR – Dividends will continue to be given out to Employees Provident Fund savers from their deducted EPF housing loan in Account 2.

The EPF has given this assurance following recent emails and blogs that stated the EPF does not pay dividends on this account.

One email had called on EPF contributors to check their Account 2 for missing funds.

"Assuming you have RM100,000 in your [Account 2] and your monthly housing installment is RM2,000, the EPF will approve your application to withdraw from your Account 2 the sum of RM100,000 and pay you  RM2,000 monthly for the next 50 months.

"Everything appears to be in order but ... what the EPF didn't highlight is that when the application was approved, the total amount (RM100,000) is removed from [Account 2], “ the email writer said.

The EPF clarification

Explainig the situation,  EPF public relations senior manager Nik Affendi Jaafar said when a member’s application to withdraw his house installments is approved, the amount needed for this purpose  would be taken out of Account 2 and put aside.

"The reason for this is to separate the amount from the main account, as funds allocated for this withdrawal cannot be used for other
withdrawals from Account 2.

“In addition, it serves to facilitate as well as monitor the monthly payments," he said in a statement here Wednesday.

Nik Affendi said EPF members will continue to earn their annual dividends from remaining savings in the fund until he or she reaches the age of 75.

Dividends continue

Accordingly, the savings that have been kept aside and are committed for withdrawals under housing loan monthly installment will continue to receive dividends for the year. The dividends on this amount will be credited into Account 2 after dividend for the year is declared.

The housing loan monthly installment withdrawal was introduced in January last year and as the dividends for 2008 has yet to be declared, there is
no issue of the EPF not paying dividends on the amount, Nik Affendi said.

Hoping the statement would put to rest any confusion regarding the issue, he added that the EPF was committed to protecting the members’ interests and enhancing the value of their savings. - Malaysian Mirror