RECENTLY, a notice circulated on WhatsApp claimed that if one of your beneficiaries in the EPF (Employees' Provident Fund) Nominees List dies, it would automatically void the whole arrangement of the list.
The message implied that if you only list one nominee, and should he or she die before you, your EPF savings will be surrendered to Amanah Raya upon your death.
It also made the claim that there is a time crunch of three days to visit an EPF counter to prevent the above scenario for your money, if no nomination is made or if a beneficiary and the member die at the same time.
Are those claims true?
Verdict:
FALSE
EPF has since released a statement dismissing the viral chain message on nominations and the three-day claim.
“If one of the nominees dies, only the portion attributed to the deceased nominee will be invalidated.
“Any unclaimed savings will remain with EPF until the deceased member reaches the age of 100, following which the monies will be transferred to the Registrar of Unclaimed Monies,” EPF clarified in a statement posted to its website and social media accounts on Tuesday (March 19).
“If the member later dies without updating the nomination, the surviving beneficiaries will receive their portion accordingly,” the fund clarified.
It added: “Only the portion that was bequeathed to the deceased beneficiary will be subject to procedures under the 'EPF savings without nomination' in which case priority for the right to claim the deceased member's savings shall go to the next of kin or appointed administrator of the estate.”
Hence, it is not true that when a member has named more than one beneficiary, the entire nomination will be deemed void should one beneficiary die before the member.
However, if a member has named only one beneficiary and that person dies before the member, the nomination will be deemed void unless a new beneficiary is nominated.
Members can also change or update their nomination anytime by completing a new KWSP Form 4. This will automatically revoke any earlier nomination made.
If a member dies without nominating a beneficiary and depending on the amount the member has in their EPF account, the following conditions will apply:
1) If the member has less than RM25,000, an initial sum of RM2,500 will be paid to the next of kin. The balance will be paid two months after the member's death.
2) If the member has more than RM25,000 in savings, the initial sum of RM2,500 will be paid to the next of kin. The second payment (not more than RM17,500) will be paid to the next of kin two months after the date of death. The balance of the savings will be paid upon submission of a letter of administration, grant of probate or a distribution order.
“Obtaining these documents can be time-consuming and fees may be imposed by the issuing authorities. By nominating (beneficiaries), members will be able to ensure that the withdrawal process by their (beneficiaries) will be hassle-free and free of any charges,” EPF said.
It added that Muslim members must obtain a faraid certificate from the estate administrators, such as Amanah Raya Bhd, the courts or the land office.
Reference:
https://www.kwsp.gov.my/web/guest/w/chain-email-on-nomination?p_l_back_url=null
