A MUST READ – NEW EPF RULES

If ONE (1) of your Nominees in the EPF Nominees list dies, automatically
the whole arrangement (EPF Nominees list) is VOID .. Meaning if, you
only put in One (1) name & unfortunately he/she dies before you –
automatically EPF will channel your EPF money to trustee of AMANAH RAYA
upon your death.

Even though if you have few names in the EPF Nominees list, – the whole
arrangement is VOID & none of the individual names left in the EPF
Nominees list will get their portion & automatically EPF will channel
your EPF money to trustee of AMANAH RAYA upon your death.

Piece of advice – if any of the your Nominees in the EPF Nominees list
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 .

Upon surrender to trustee of AMANAH RAYA, your children will have to
battle the money thru 3 channels;

–    Majlis Agama

–    Pejabat Tanah

–    Mahkamah

The normal period via above 3 channels usually takes 2-3 years (except
if you have inside/tip top connection) at Amanah Raya.

5 Responses

  1. Hi there,

    Actually, wat u r posting here is an old issue and it is totally untrue. FYI, the EPF had already posted their response to the chain email in their website. Please forward this response to all ur friends to avoid any confusion/unnecessary tension and dont spread anything that can be very misleading. I think it was our biggest responsibility as a blogger to ensure the validity of an information before posting or spreading it.

    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.

    Depending on the amount of savings in the member’s account, if there is no nomination the procedure will be as follows:

    If member’s EPF savings are less than RM25, 000:
    􀂃 Initial sum of RM2,500 will be paid to the next of kin.
    􀂃 The balance will be paid after a two-month period from the date of the
    member’s death.

    If member’s EPF savings are more than RM25, 000:
    􀂃 Initially a 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 after two months from the date of the member’s death.
    􀂃 The balance of the savings will be paid upon submitting the Letter of Administration/Letter of Probate/Distribution Order/Faraid Certificate from the party that administers estates such as Amanah Raya Berhad or the Court or the Land Office, respectively. The process to obtain these documents is time consuming and certain fees will also need to be paid. On the other hand, with nomination, no fees need to be paid.

    This is precisely why nominating is very important. You should also ensure that you update your beneficiary whenever there are any major life changes such as marriage, additional new members or the death of a nominated beneficiary.

  2. Dear Adeosk,
    Thank you so much for enlightening us all on the real facts. Warm regards.

  3. How much money from my basic pay will be deducted if my current basic pay is (15600+ 6000)=21600 and what will be my emplyer’s contribution? is there any maximum limit of contribution from the employer’s side?

  4. what percentage of the salary of an employee is required to be deducted by the employer under epf?

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