My Trading Adventure
EPF withdrawal is a scam?
CP TEH
Publish date: Sun, 22 Apr 2012, 10:53 PM
CP TEH
0 2,918
All the writings in this weblog are mainly for PLEASURE reading purposes. I am in NO position to recommend a call(BUY/SELL). Please check with those know-hows before you make a decision. Yes, I am just a learner, with only five years experiences in KLSE. So, please BEAR with me.
Shocking!!!
Remember during Budget 2008 announcement last yr, our Finance Minister cum PM) announced that in order to assist KWSP members to reduce the burden in housing loan repayment, KWSP will allow monthly withdrawal from members' A/C II for the purpose? Sounds like a nice goodies! When you apply for the monthly withdrawal, you only need to provide KWSP yr housing loan & installment details from yr bank and the bank a/c # you like KWSP to bank the monthly withdrawal into it. KWSP will approve yr application based on the available amt in yr A/C II and compute the withdrawal period by dividing the approved amt with the monthly installment amt. Application process takes about a month and you will receive the monthly payout promptly into yr bank a/c! Well everything appear to be nice and good. It was indeed a noble plan until you take to close look at yr KWSP Statement!
This is how the so-called KWSP SCAM works........ Assuming you have RM100,000 in yr A/C II and yr housing loan's monthly installment is RM2000/mth. KWSP will approve your application of withdrawal from yr A/C II of RM100,000 and pay you RM2000/mth for the next 50mths. Everything appears to be in order BUT....... What KWSP didn't highlight to you is that when the application was approved, the TOTAL AMT (RM100,000) is removed from A/C II! It appears to be transferred to an unknown a/c to effect the monthly payment from therein. The impact to the member are as follows :-
1. You just lost RM100,000 from yr A/C II. Assuming the KWSP Dividend is 5%, you will lose RM4,000 in dividend during the 1st year. Based on the above example you will lose RM10,000 over the 50 mths period!
2. There is no statement to account for the amount approved vs. amt paid, hence you would need to keep the monthly payment voucher to reconcile against the approved amt over the 50mths period to ensure there is no missing amt! Assuming there are 100,000 members who innocently fell prey to this SCAM, based on the above example, KWSP would have cheated the members of 100,000 X RM10,000 = RM1,000,000,000 (that's RM1 BILLION) over the period!
Furthermore, if you discovered this SCAM early and intend to stop the plan, KWSP would not allow any cancellation of the plan until at least 1 year. That would mean, once the application is approved, based on the above example, you would have lost RM4,000. 100,000 members would have lost 100,000 X RM4,000 = RM400,000,000(RM400 MILLION) in One Year!!! If you're a victim of this KWSP SCAM, would suggest you call your MP to raise it up in Parliament! For others who have not fallen into this SCAM, pls continue to watch out and alert yr family & friends about this.
HOW COULD THE GOVERNMENT ALLOW ITS AGENCY TASKED WITH SAFEGUARDING ITS CITIZEN'S HARD EARNED MONEY TO CHEAT ITS MEMBERS IN THIS MANNER???
Taken from my e-mail
TEH
Remember during Budget 2008 announcement last yr, our Finance Minister cum PM) announced that in order to assist KWSP members to reduce the burden in housing loan repayment, KWSP will allow monthly withdrawal from members' A/C II for the purpose? Sounds like a nice goodies! When you apply for the monthly withdrawal, you only need to provide KWSP yr housing loan & installment details from yr bank and the bank a/c # you like KWSP to bank the monthly withdrawal into it. KWSP will approve yr application based on the available amt in yr A/C II and compute the withdrawal period by dividing the approved amt with the monthly installment amt. Application process takes about a month and you will receive the monthly payout promptly into yr bank a/c! Well everything appear to be nice and good. It was indeed a noble plan until you take to close look at yr KWSP Statement!
This is how the so-called KWSP SCAM works........ Assuming you have RM100,000 in yr A/C II and yr housing loan's monthly installment is RM2000/mth. KWSP will approve your application of withdrawal from yr A/C II of RM100,000 and pay you RM2000/mth for the next 50mths. Everything appears to be in order BUT....... What KWSP didn't highlight to you is that when the application was approved, the TOTAL AMT (RM100,000) is removed from A/C II! It appears to be transferred to an unknown a/c to effect the monthly payment from therein. The impact to the member are as follows :-
1. You just lost RM100,000 from yr A/C II. Assuming the KWSP Dividend is 5%, you will lose RM4,000 in dividend during the 1st year. Based on the above example you will lose RM10,000 over the 50 mths period!
2. There is no statement to account for the amount approved vs. amt paid, hence you would need to keep the monthly payment voucher to reconcile against the approved amt over the 50mths period to ensure there is no missing amt! Assuming there are 100,000 members who innocently fell prey to this SCAM, based on the above example, KWSP would have cheated the members of 100,000 X RM10,000 = RM1,000,000,000 (that's RM1 BILLION) over the period!
Furthermore, if you discovered this SCAM early and intend to stop the plan, KWSP would not allow any cancellation of the plan until at least 1 year. That would mean, once the application is approved, based on the above example, you would have lost RM4,000. 100,000 members would have lost 100,000 X RM4,000 = RM400,000,000(RM400 MILLION) in One Year!!! If you're a victim of this KWSP SCAM, would suggest you call your MP to raise it up in Parliament! For others who have not fallen into this SCAM, pls continue to watch out and alert yr family & friends about this.
HOW COULD THE GOVERNMENT ALLOW ITS AGENCY TASKED WITH SAFEGUARDING ITS CITIZEN'S HARD EARNED MONEY TO CHEAT ITS MEMBERS IN THIS MANNER???
Taken from my e-mail
TEH
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Discussions
Be the first to like this. Showing 7 of 7 comments
Hi CP Teh,
First, i appreciate your effort to bring up this issue as most of the readers, i think, is a KWSP member.
My housing loan withdrawal from EPF a/c II was approved in 2010 and is currently getting monthly transfer into my bank a/c.
What I can tell you is ALL are NOT true.
I am not sure who is writing this but I am sure he/she is not currently getting monthly hse loan withdrawal from EPF.
1st, the withdrawn amount is actually transfered to a seperate a/c and is getting annual dividend like what we get in a/c II. In the annual and current statement, this seperate a/c is just below the a/c II. The total dividend received is sum from a/c I + a/c II + this hse loan a/c.
2nd, there is an official statement for this seperate a/c, clearly stated initial amount, monthly progressive withdrawal and YTD balance.
I am using KWSP i-akaun and is tracking monthly transaction as well as the annual dividend credited, everything is alright. One thing surprise me , I received the similar chain email 2 yrs ago and today it is still spreading. I remember, few yrs back it was a hot topic and EPF's director had a press conf to clarify it. It is not convinient to disclose my statement publicly so I can send to your private email. But, please stop this chain as it is not true at all. Somebody has motive behind it.
2012-04-23 00:26
Hi khwong
Thanks a lot for sharing of the info. The purpose of posting such is to make awareness to many(who might think of withdrawing EPF ... it is a/c I ... for trading purposes). I am not sure about the so-called scam, but it is good for some kind people like you to point out to many.
Hope more will come out to speak about it, for general interests.
I have not withdrawn my a/c II for housing purposes, so I do not have much idea of the scheme.
Thanks again for spending some of your time to point it out for all.
TEH
2012-04-23 08:21
Teh, if it is not true then please do not simply spread fear and rumour like this. Imagine if someone truely wanted to use the EPF to reduce his /her loan and had not read the reply by khwong33 then he would have been mislead by your article.
I would rate it as being irresponsible to post such kind of rumour. I suggest you remove this article.
2012-04-23 09:13
Thanks a lot, Teh and Steven for valuable input.
Another EPF topic, which is more of our interest as a investor is Withdrawal from a/c I to directly invest in stock market (not for unit trust) via some local broker/investment hse. I found the withdrawal and annual mgmt fee is quite high. Nevertheless, it is still an opportunity during market crash like 2008/09 to invest in some undervlued blue chips and get handsome return when market recover. What is you guys opinion?
2012-04-23 09:16
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2012-04-22 23:36