EPF to pay 2.5% dividend under amended EPF Act

http://www.thestar.com.my/News/Nation/2015...vidend-EPF-Act/

So 2.5% is the minimum? Before this how much was the minimum?

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Announcement Date	Day	Dividend	Year	Credit Date	Day	Source
07 Feb, 2015	Sat	6.75%	2014	07 Feb, 2015	Sat	EPF
16 Feb, 2014	Sun	6.35%	2013	17 Feb, 2014	Mon	EPF
17 Feb, 2013	Sun	6.15%	2012	18 Feb, 2013	Mon	EPF
19 Feb, 2012	Sun	6.00%	2011	20 Feb, 2012	Mon	EPF
20 Feb, 2011	Sun	5.80%	2010	21 Feb, 2011	Mon	EPF
05 Mar, 2010	Fri	5.65%	2009	08 Mar, 2010	Mon	EPF
16 Mar, 2009	Mon	4.50%	2008	23 Mar, 2009	Mon	EPF
30 Jan, 2008	Wed	5.80%	2007	01 Mar, 2008	Sat	EPF
05 Feb, 2007	Mon	5.10%	2006	end Feb, 2007	---	EPF
23 Feb, 2006	Thu	5.00%	2005	---	---	EPF
17 Feb, 2005	Thu	4.75%	2004	---	---	EPF
20 Feb, 2004	Fri	4.50%	2003	---	---	EPF
18 Apr, 2003	Fri	4.25%	2002	---	---	limkitsiang.com

So 2.5% is the minimum? Before this how much was the minimum?

iinm, there was none. they always declare based on performance.

this amendment will introduce 2nd dividend rate, not replace existing one.

What does is the meaning of this 2nd dividend rate? Original + min 2.5% extra?

"It also seeks to introduce a new section which states that no dividend shall be credited into the account of a member who is not a Malaysian if no contribution has been credited into his or her account over a period of three years."

interesting new section.
so non Malaysian can also contribute to EPF?
or are they referring to those who gave up their citizenship?

"In line with the creation of the KWSP-I account, Section 27 will be amended to enable two dividend rates to be announced for EPF contributors," he said

Further under the new amendments, the EPF board may have the power to declare a dividend of not less than 2.5% per annum for members who have not elected for their accounts to be managed according to syariah principles.

The Bill also states that the EPF may have the power to declare a dividend of not less than 2.5% per annum for those whose elections have not taken effect.

"In respect of contributions made by the members of the Fund whose elections for their accounts be managed according to the Syariah under the proposed section 43A have come into effect, the Board shall declare dividend at any rates according to the actual performance of the investment made by the Board in relation to the accounts," reads the Bill.

It's all about Syariah.  If you choose not to be under this scheme, then you do not partake in the performance of the Fund. Then their obligation is only 2.5% as far as they are concerned.

Meaning everyone irrespective of race and religion is FORCED to accept Islamic principles. 

This is Malaysian fair and equitable principles.

I don't think that is true. Both also will be given NO LESS THAN 2.5% (from what I read, I understand that both will be minimum 2.5%). Could be wrong here.

Further under the new amendments, the EPF board may have the power to declare a dividend of not less than 2.5% per annum for members who have not elected for their accounts to be managed according to syariah principles

"In respect of contributions made by the members of the Fund whose elections for their accounts be managed according to the Syariah under the proposed section 43A have come into effect, the Board shall declare dividend at any rates according to the actual performance of the investment made by the Board in relation to the accounts," reads the Bill.

"It also seeks to introduce a new section which states that no dividend shall be credited into the account of a member who is not a Malaysian if no contribution has been credited into his or her account over a period of three years."

interesting new section.
so non Malaysian can also contribute to EPF?
or are they referring to those who gave up their citizenship?

Here....says it all....read carefully
.

The Bill also states that the EPF may have the power to declare a dividend of not less than 2.5% per annum for those whose elections have not taken effect.

So 2.5% is the minimum? Before this how much was the minimum?

iinm, there was none. they always declare based on performance.

this amendment will introduce 2nd dividend rate, not replace existing one.

Section 27

Declaration of dividend

27.
At or after the end of the financial year, being the 31st December of each year, the Board shall with the approval of the Minister, declare a rate of dividend in respect of that year, being not less than two and one half per centum per annum and, subject to section 50, dividend shall be payable on contributions to the Fund at such rate:

There was.

EPF act 1991
http://www.kwsp.gov.my/portal/en/web/kwsp/...epf-act-reports

It meant even those who didn't make the change, EPF can give dividend of min 2.5%. So is not restricted to those who switch.

The sentence was more due to shariah principle, or islamic banking principal, they cannot have fixed "interest", but based on profit sharing principal.

Just like conventional FD vs islamic deposit.

They can't put minimum fixed return/interest in islamic product.

Correct me if I am wrong.