EPF: Members Cannot Place All Their Monthly Contributions Only Into Account 3

However, members may voluntarily contribute up to RM100,000 per year, which will be split into all three accounts based on the new ratio.

Cover image via Ahmad Ukasyah/New Straits Times

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Once the Employees Provident Fund's (EPF) restructuring takes effect on 11 May, members will have a one-time option to transfer a portion of their Account 2 savings to Account 3 (Fleksibel) until 31 August 2024

This one-time option allows members to begin their new Account 3 with an initial balance. However, if a member chooses not to opt in, no funds will be moved, and their Account 2 balance will remain untouched, as clarified by EPF.

This policy change prompted a flurry of questions from the public, which SAYS answered in an explainer after speaking to an EPF spokesperson last week. Read our explainer here.

Since then, some have asked if members can voluntarily add more money to Account 3 (Fleksibel) after learning that the dividend for Account 3 will be the same as for Account 1 and Account 2 for the time being.

So, can they?

SAYS reached out to EPF for further clarification

The EPF spokesperson told SAYS in an email today, 30 April, that while members may choose to voluntarily contribute up to RM100,000 per year, contributions into only Account 3 (Fleksibel) are not allowed.

What this means is that members cannot place all their monthly contributions into only one of the three accounts and contributions must be split according to the new ratio announced by EPF.

Starting 11 May, any contributions will be split as such:
75% going to Account 1
15% to Account 2, and
10% to Account 3 (Fleksibel)

To reiterate, members cannot directly contribute only to Account 3 (Fleksibel). All voluntary contributions will be split as per the new ratio.

Here's an analogy:

Imagine you decide to place an extra RM1,000 into your EPF savings each year.

Out of that RM1,000:
- RM750 would automatically go to your Account 1
- RM150 would go to your Account 2, and
- RM100 would be allocated to your Account 3 (Fleksibel)

Additionally, members also don't have the option to transfer money from Account 1 to Account 2 or Account 3 (Fleksibel) because Account 1 is primarily intended for your retirement.

Read more on this topic here:

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