KWSP

KWSP = Kumpulan Wang Simpanan Pekerja

I visited KWSP in KB today, 10 November 2013. It was my second visit. The first time I visited it was in 1990-91 when I withdrew some money to build my house.

For us academics, the pay-in is 9%:11% of our basic monthly salary. Of course the pay-in changes with pay rise. I have not followed my KWSP pay-ins for a long time simply because I did not need the money all this while and I was 'under 55'.

Now that I have passed the 55 age limit which enables me to withdraw both my KWSP funds, I was happy. But there is a catch. If I withdraw all my KWSP funds, I may have to repay the government since the withdrawal amount will include pay-in by the government as well. KWSP has no way to track what amount is government $ and what amount is owned by me. KWSP advised to write in to Bahagian Pencen and ask how much is owned by the government in my KWSP account. I decided not to go that way.

To avoid riba (usury) if I resort to borrow from commercial banks, I decided to withdraw all my KWSP and use it to renovate my old house. I listened to the KWSP officer explained and followed her advise to withdraw the entire amount and then be ready to repay the government when I turn 60.

I asked the KWSP officer if the KWSP account will be closed at all. She said no because pay-in will continue after age 60. My account will remain open till age 75. I can come in and check my account at age 75. After age 75, KWSP will still leave it open till I die. Then it will close my KWSP account.