Make full use of EPF and IRB online services

I HAVE observed that two issues close to the heart of most working people are taxes and our Employees Provident Fund (EPF) contributions.

For those of us who draw a regular income, it can be quite painful to find a chunk of what we earn automatically deducted to these two agencies.

Still, few would disagree that in terms of quality of service, both the Inland Revenue Board (IRB) and the EPF are pretty good in dealing with their customers, whether face-toface or online.

Two standout online examples would be the IRB’S e-filing system and the EPF’S i-akaun which allow us to interact with these agencies from the comfort of our homes and at times convenient to us.

Malaysians, however, do not quickly embrace such technological conveniences which is why not all taxpayers e-file, although the numbers have been increasing each year. As for the i-akaun, only 750,000 EPF members have signed up, a mere fraction of the 13 million members at present.

I was one of the early birds and am impressed that I no longer have to wait for the annual statement to keep track of my savings and ensure that my contributions are paid on time.

Another interesting facility is that the system allows me to check on the estimated amounts eligible for withdrawals in various categories like medical, education, housing, unit trusts, etc. The figures change monthly as our savings increase.

I guess when you are between the ages of 50 and 55, the EPF account takes on extra meaning in your life.

Do you know that with i-akaun you can now check whether the names of your EPF nominees are in order?

The facility came into effect on Jan 1. So one night last week, I logged into my account to see if everything was correct.

My wife and two boys were equally interested to know if I had secretly changed my nominees after I hinted that I might do so because they did not get me what I wanted for my birthday.

Of course, I was only joking, but we must all take the nomination process seriously.

It is sad that only 4.8 million members have nominees in their accounts. And no one, including the EPF, knows whether the nominees are still valid.

As I wrote in this column some time back, most working people begin by naming their parents as their nominees.

After they get married and have children, and with their parents now in their 80s, they may not even bother to change their nominees.

Certainly it makes sense that if there is any change in our status, like marriage or divorce, we want to make sure that the hard-earned savings from our working life will go to the right people.

And the headache begins when we learn that under the law, the EPF will only give out the money to whoever is listed as the nominee. Nothing in our will, nor last-minute instructions to immediate family members, will supercede what is officially on the EPF records.

So proper housekeeping is required and I would strongly advise every EPF member to not only update their nominees, but also sign up for i-akaun as soon as possible.

But Malaysians being Malaysians, I doubt if they will take my advice seriously. Unless, perhaps if EPF decides to give a slightly better dividend, or a branded smartphone, to those who do so. Now, that’s a thought.

Deputy executive editor Soo Ewe Jin wonders if EPF will consider allowing partial withdrawals based on specific needs to those who are 50 but do not wish to take out their whole entitlement under Account 2.