EPF may declare dividend of up to 6.4%

KUALA LUMPUR (Feb 11, 2014): The Employees Provident Fund (EPF) may declare a dividend of up to 6.4% for last year, up from 6.15% in 2012.

Sources said the dividend is expected to be announced next week.

They said the higher dividend is reflective of EPF's prudent management of funds despite the economic challenges facing the nation.

"The higher dividend payout by EPF will be welcomed by its 13.6 million members, especially those who retired at 55 years of age who will now have a little more to spend," a source said.

He said the EPF is obligated to provide dividends of only 2.5%, but rates have been on the rise over the last decade.

Last year's declaration of a 6.15% dividend was the highest since 2004, with the EPF generating a RM31.02 billion gross investment income (GII).

The GII recorded last year was also the highest in EPF history, beating its achievement in 2011 by 13.91%.

EPF recorded a RM27.23 billion GII in 2011.

As of Dec 31, 2012, the EPF had 6.4 million active contributing members with 502,863 contributing employers.

As of 2012, the size of the fund stood at RM526.8 billion.

Source : The Sun