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KWSP Missing Dividend Payout ?

Scenario
I was looking at my Year 2008 KWSP report and the 1st thing I look at (I am sure that’s the first thing most ppl look at as well) is the total amount figure I have in my account.
The 2nd figure I look at is… how much amount in dividend interest I have receive this year.

Now…. that’s 4.5% in year 2008…. Multiply by this… Add that……
.
.
.
.
Heh! The amount doesn’t add up!
If the amount stated in the Report is higher than my simple 4.5% X Annual Total Amount
then I am not complaining…. But it’s lower. Like 0.5% lower.

Of course, this is assuming since dividend is declared at the end of the year,
interest dividend given is base on total amount for the whole year.
Solution
I decided to get to the bottom of this and email KWSP.

KWSP Enquiry

 

It’s great that they have a website and enquiry page!

Ask them how the dividend payout is calculated….
No answer. Not even from an automated answering machine.

So the next best thing I did is to post the question in Lowyat Forum.
It’s probable the most popular forum in Malaysia.
Somebody may have an idea how this whole Dividend Calculation work out.

KWSP Question Lowyat

As usual, got some weird, funny or meaningless reply…

KWSP Weird Reply

And then a someone reply this….

KWSP Good Reply

Now, that does seem to make sense…
The interest payout is calculated base on the amount contributed
starting from the day it was contributed till the year-end.

It may sound complicated but it really isn’t.

To confirm all understanding on how this work,
I suggest to compute this base on a simple example.

KWSP Suggestion

And he did…

KWSP Calculation Example

Now, taking this example I decided to try this method out on my actual reported figures.
However, I realize there’s a “Tarikh” date column on the left. I assume this could be some sort of
transaction date on when the amount is contributed.

KWSP Date

This will make calculation a lil bit more difficult
if the number of contributed days is base on transacted date and not by month-end.

Worst, there’s some months where the “transaction” date is really late.
Example…September contribution only “transacted” on November….
This could mean lost of dividend money due to late transaction!

Lucky thing, I don’t think it’s base on “transaction” date…..

I try calculating base on the assumption that contribution is made “spot-on” by end of every month.

KWSP Excel

Result…… “almost” with just RM 2 off the mark…..

Although it isn’t the “exact” figure as the annual report, it’s close enough.
Besides, a daily pro-rated calculation is the most logical way the dividend
payout amount should be calculated.

Summary…
Community forum is one of the best ways to gain insights and answers especially if it’s obvious
& …. our government service still doesn’t read emails.

August 8th, 2009 | 249 comments

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