Why viral warning on New EPF Nominee Rules is fake news!

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Find out why the viral warning on the new EPF (KWSP) Nominee rules is really fake news, and warn your family and friends!

 

Claim : New EPF Nominee Rules Will Channel Money To Amanah Raya!

This warning about new EPF (KWSP) Nominee rules has gone viral on WhatsApp recently:

Forward as received

Malaysian pls 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 ..

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Truth : New EPF Nominee Rules Will Not Channel Money To Amanah Raya!

This is yet another example of fake news circulating on WhatsApp, and here are reasons why…

Let me start by pointing out that the Employees Provident Fund (EPF / KWSP) has publicly refuted the viral warning.

The EPF emphasises that the information in the chain email is NOT TRUE.

I will now go through the claims, and share with you what EPF / KWSP has said about those allegations:

Whole EPF Nominee List Is Void When A Nominee Dies?!

False. EPF clearly states that it is not true that your nominee list is deemed void whenever one of your beneficiaries die.

If an EPF member nominates more than one beneficiary, and one of them dies, then only the portion bequeathed to that deceased beneficiary will be invalid.

If the EPF member dies without updating his/her EPF nominee list, the surviving beneficiaries will receive their portions accordingly.

Meanwhile, the portion bequeathed to the deceased beneficiary will be subject to procedures under “EPF savings without nomination”, where the priority for the right to claim shall go to the next of kin or appointed administrator in charge of your estate.

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Why viral warning on New EPF Nominee Rules is fake news!

Your EPF Money Goes To Amanah Raya If No Beneficiary?!

False. If an EPF member nominates a single beneficiary, and the beneficiary dies, the nomination is void unless a new beneficiary is nominated. However, if the EPF member dies without nominating a beneficiary (or the sole beneficiary has died), the following conditions apply:

If the member has less than RM25,000 in his/her EPF Account, the initial sum of RM2,500 will be paid to his/her next of kin. The balance will be paid two months after the member’s death.

If the member has more than RM25,000 in his/her EPF Account, the initial sum of RM2,500 will be paid to his/her next of kin. The second payment (not more than RM17,500) will be paid to the next of kin two months after date of death. The balance of the savings will be paid upon submitting the Letter of Administration / Grant of Probate / Distribution Order / Faraid Certificate from estate administrators such as Amanah Raya Berhad or the Court or the Land Office.

For Muslim members, the Faraid Law will apply, in which case the beneficiary will act as an administrator or “wasi” who will be responsible for distributing the savings in accordance to the Faraid Law.

You Must Produce Death Certificate To Change Nomination?!

False. EPF members do not need to produce the death certificate of a deceased beneficiary to change their nomination.

EPF members can change or update their nomination at any time, by completing a new KWSP 4 Form. This will automatically revoke any earlier nomination made.

Family Members Must Go To EPF Counter Within 3 Days?!

False. The family of EPF members who happen to die together with their nominees do not need to go to the EPF counter within 3 days, to prevent their savings from being “surrendered to Amanah Raya”.

EPF will disburse the money as if the EPF member died without nominating a beneficiary (see above).

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Name : Adrian Wong
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Dr. Adrian Wong has been writing about tech and science since 1997, even publishing a book with Prentice Hall called Breaking Through The BIOS Barrier (ISBN 978-0131455368) while in medical school.

He continues to devote countless hours every day writing about tech, medicine and science, in his pursuit of facts in a post-truth world.

 

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