The Employees Provident Fund (EPF) expects the i-Sinar facility to benefit 2 million eligible members with an estimated advance amount of RM14 billion to be made available.
Chief executive officer Tunku Alizakri Raja Muhammad Alias said the EPF has widened the scope of i-Sinar to cover active members who lost their jobs, were given no-pay leave, or have no other source of income.
Eligible members will have access to 10 per cent of their savings in Account 1, subject to always having a minimum balance of RM100.
“For those who have RM90,000 and below in Account 1, they have access to any amount up to RM9,000.
“For those who have above RM90,000 in Account 1, they have access of up to 10 per cent of their Account 1 savings. However, the maximum total amount allowed to be advanced is RM60,000,” he told a media briefing today.
He said all advances will be staggered over a period of six months with a first month advance of up to RM4,000 for those with Account 1 savings of RM90,000 and below, and of up to RM10,000 for those having more than RM90,000 in Account 1.
Members who choose to apply for the i-Sinar facility will be required to replace the full amount advanced.
“All future contributions will be 100 per cent credited to Account 1 until such time the amount advanced is replenished. Thereafter, contributions will revert to 70 per cent to Account 1 and 30 per cent to Account 2,” he said.
Eligible members can start applying from December 2020 and funds will be credited into members’ bank account by the end of the month following their i-Sinar application.
“First crediting will take place in January 2021 and it will be made over a period of six months from the first date of crediting,” he said.
The facility is aimed at providing affected members supplementary funds to survive the present crisis and ensure some future retirement savings, Alizakri said. — BERNAMA