There are a few chain emails and Whatsapp message that has been circulating recently on the supposedly certain “hidden” actions or rules by EPF which is deemed as inappropriate. Get your facts rights people, as some of these are misinformation in which EPF itself has answered to them publicly via public memo. So the next time before your forward such misinformation further, check your source and EPF official website.
Misinformation#1 – When your sole or last surviving nominee dies, your money automatically gets put into Amanah Raya Public trustee. On top of that, the death of any 1 of your nominees, your entire nomination will be void even though there are surviving nominees.
If any of the nominees dies, please do immediately approach the nearest EPF counter & present the Death Certificate of the individual & register your NEW / LATEST Nominee in the EPF Nominees list + NEW / LATEST percentage. If, you & the other party (maybe spouse) involved in the same misfortune (accident / illness) that caused death to both yourself / spouse please, please, please alert your siblings / relatives / parents to immediately approach the nearest EPF counter & share the information within 3 days to AVOID all EPF money to be surrendered to trustee of AMANAH RAYA.
EPF’s Response: If a member has more than one nominee and one of the nominees dies during the member’s lifetime, only the portion that was bequeathed to the deceased nominee will be invalid. Should the member later dies without updating his nomination, the other nominees will receive their portion accordingly. Only the portion that was bequeathed to the deceased nominee will be subject to procedures under ‘EPF savings without nomination’ in which the first priority for the right to claim the member’s savings goes to the nearest next of kin or the appointed administrator of the deceased member’s estate. Therefore it is not true that if you, as a member, have named more than one nominee, the entire nomination will be void if one of the nominee dies before you. It follows however that if you have named only one nominee and he or she dies before you, the nomination will be void unless a new beneficiary is nominated.
• Please note that you don’t have to produce the death certificate of a deceased nominee to change your nomination. You can change/update your nomination anytime by simply completing a new KWSP 4 (AHL) Form. This will automatically revoke any earlier nomination made.
• The information concerning approaching EPF counter within 3 days to avoid EPF savings being ‘surrendered to Amanah Raya’ if no nomination is made or if nominee dies at the same time as the member is not true.
Misinformation#2 – No matter how old are you, no matter how long you have held your EPF account, no matter how much money you have in you EPF account, and matter how long you have paid for your EPF, according to Government Law, EPF will need to pay RM 2000 to an EPF account holder’s family when he/she died (family members need to claim the RM 2000 within 2 months). EPF never inform us about this, I reckon very few people’s family did actually receive this RM 2000 when his/her family member died because not many people know about this. Where did this RM 2000 goes when the died’s family did not claim for RM 2000? someone’s pocket?? We don’t know!
EPF’s Response: The above email contained untruthful accusation. The EPF would like to inform its members that a Death Benefit payment of RM2,500 will be presented to the dependents of the deceased members as a gesture of compassion and to ease their financial burden. However, this benefit will only be given once and subject to the following conditions:
Member has not reached the age of 55 at time of death;
Application for Death Withdrawal is made within 6 months from the date of the demise of the member.
The Death Benefit is payable to the members’ dependent or next-of-kin when the application for Death Withdrawal is made. The EPF would also like to emphasise that the money for Death Benefit comes from EPF’s investment earnings and not from the members’ savings. If the dependent does not qualify under the conditions for Death Benefit, the money will still remain with the EPF to be distributed to all members as annual dividend.