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Malaysia could merge pension and social security funds, says report
05 July 2018
Category: News, Asia, Malaysia
By Asia Asset Management
LinkedIn The Malaysian government could merge the largest pension fund in the country and the national social security agency, with the aim of creating a single entity to ensure the well-being of the workforce. the country's work, according to a local source. The Department of Human Resources is preparing a Cabinet document to study the feasibility of combining the Employees Provident Fund (EPF) and the Social Security Organization (SOCSO) and whether they can operate under an "umbrella", Minister of Social Security Human Resources Mr. Kulasegaran said in a report published July 3 The Malaysian Reserve
A spokesman for the ministry told Asia Asset Management (AAM) that there had a "proposal" "For Mr. Kulasegaran's move, but declined to comment further.
According to a fund manager based in Kuala Lumpur in an asset management company, it will be" interesting " The FPE and SOCSO have different functions.
The EPF manages retirement savings for its members while SOCSO provides social security protection through insurance social, including s medical and cash benefits. Both plans require mandatory contributions from employers and employees. But while EPF members can start withdrawing their savings once they reach 55, SOCSO payments are not returned to contributors.
The report of the Malaysian Reservation quotes Mr. Kulasegaran and functions between EPF and SOCSO and "there is no reason for them to be separated".
"What is more relevant is whether we can merge SOCSO and EPF because both do the same job, such as receiving employee contributions, acting on non-compliance and payments," he was quoted as saying. as saying.
EPF had 814.38 billion ringgit (US $ 201.27 billion) assets under management (AUM) as of March 31, 2018 . 19659006] SOCSO had 25.8 billion ringgit AUM as of June 20, 2017, according to the latest data available for the organization.
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