4.6 EPF Transfers and Withdrawals for Investment in Approved Unit Trust Funds

What EPF-MIS Is

The EPF Members Investment Scheme (EPF-MIS) lets members invest part of their EPF savings in unit trust funds approved by EPF, managed by EPF-appointed fund management institutions. Applications can be made through EPF's online i-Invest service (in i-Akaun) or through UTMC or IUTA agents and counters approved by EPF. EPF encourages members to consult a UTS Consultant before investing.

Charges

EPF sets the cap on the initial (front-end) sales charge for MIS investments, and may change it:

How Much Can Be Transferred

Other conditions in the study guide: the minimum investment is RM1,000, and members may make multiple transactions within three months as long as the total stays within the eligible amount. Members must also follow EPF's administrative rules, which EPF can change.

The formula

$$\text{Eligible amount} = (\text{Akaun Persaraan savings} - \text{Basic Savings}) \times 30\%$$

What "Basic Savings" means

Basic Savings is the pre-set amount EPF expects a member to have in Akaun Persaraan at each age so that they reach a minimum retirement sum. The FCE study guide still prints the older 2019 schedule (rising to RM240,000 at age 55, meant to support about RM1,000 a month for 20 years). EPF has since updated it: under its Retirement Income Adequacy framework, the revised Basic Savings schedule took effect on 1 January 2026, phasing up over five years with annual RM30,000 steps towards RM390,000 at age 60. Always check EPF's current table before advising.

Worked examples (illustrative Basic Savings figures)

Members A to C mirror the study guide's Appendix 4.2 examples; the Basic Savings figures are for illustration only.

Administrative Points Consultants Must Know

1. Proceeds go back to EPF – repurchase proceeds of units bought with EPF savings are repatriated to the member's EPF account, not paid to the member.
2. No direct switches between UTMCs – the member must redeem from the existing UTS (proceeds go back to EPF) and then apply to the new UTMC.
3. Two applications for mixed money – a member investing in one fund with both EPF money and personal savings must submit two separate applications.
4. Keep up to date – EPF changes its rules from time to time (including the Basic Savings table and charges), so Consultants should check EPF's website.

How EPF-MIS Fits Into Advice

• The study guide's life-cycle discussion notes that for clients aged about 31 to 44, Akaun Persaraan balances may now be large enough to transfer some savings to EPF-approved UTS that fit their objectives (Chapter 6).
• Because the money is retirement savings, suitability matters even more: a member near 55 with a low risk tolerance should not be steered into a volatile fund just because the transfer is possible.
• The lower 0.5% online charge is a cost point a Consultant should disclose honestly when a client could invest directly.

The cost difference in ringgit

For an RM10,000 EPF-MIS investment, the maximum charges are:

The RM250 gap compounds over the years the money stays invested, so a Consultant's advice and service need to justify the higher charge.

Cash Investment vs EPF-MIS Investment

Scenario: A 56-Year-Old Member

Encik Salleh, 56, has RM150,000 in Akaun 55. Members aged 55 and above may invest any amount from Akaun 55 or Akaun Emas, provided at least RM1,000 remains, so he could invest up to RM149,000. The study guide notes this is treated as a withdrawal from EPF. A Consultant should still assess suitability carefully: at 56, with retirement income depending on these savings, a conservative allocation and a clear explanation of risk are essential.