EPF: Members welcome syariah scheme

PETALING JAYA: The Employees Provident Fund (EPF) expects 1.5 million to two million members to convert their contributions to the syariah-compliant fund in the first year of implementation.
CEO Datuk Shahril Ridza Ridzuan in a statement released by the media coordinator of the Global Islamic Finance Forum 5.0 said, an EPF survey showed that 71% of its members agreed on the need for the Islamic pension scheme called Simpanan Shariah.
Accordingly, EPF expects 30% to 40% of its members to go for the Islamic option.
EPF currently has 14.5 million members, as at the end of 2015, and RM684 billion of assets under management.
Simpanan Shariah’s initial fund size will be RM120 billion, to be allocated on a “first come first served” basis. Those who convert to this scheme cannot later switch back to the conventional scheme. This is to avoid too much jumping between the funds.
Shahril said EPF is in the process of classifying its assets as syariah-compliant and conventional, with about 40% of its assets now fully syariah-compliant.
“Being the first mover in this space helps us set the agenda for other pension schemes to go down the syariah path.”
He added that there will be no difference in the way the members manage their accounts at EPF’s offices after deciding which scheme to opt for.