It has been reported that: ‘EPF dividends would be gradually scaled down to encourage contributors to bring their money to the Private Pension Fund (PPF)’.

MTUC accepts that the EPF’s dividend rate is dependant on the return on EPF’s numerous investments. But the rationale for the Finance Ministry to deliberately reduce the dividend is ridiculous and unacceptable.

Why is the government deliberately undermining EPF’s efforts to prudently and efficiently manage their funds, in the interest of their 10 million contributors?

MTUC and the 10 million employees who are dependant on EPF’s annual dividend to enhance their retirement savings are fully aware that the dividend rate can fluctuate from year to year.

In the past two years, a number of insurance companies have been persistently lobbying the EPF and Bank Negara to siphon out employees’ savings with the EPF. MTUC’s vehement objections against this move was endorsed by the EPF Board.

The latest announcement by the Finance Ministry confirms that the insurance lobbyists have succeeded.

In view of this new development, MTUC will actively launch an aggressive campaign to encourage the EPF contributors not to participate in the proposed Private Pension Fund.

Employees in the country should pay special attention to the Finance Ministry’s statement that the investments are not guaranteed; the dividend depends on the market.

MTUC is seeking an urgent meeting with the Finance Minister to discuss the Ministry’s plan to scuttle EPF’s efforts.