Viral message on multiple EPF nominations fake, says fund
Published on: Friday, March 22, 2024
By: FMT
EPF says nominating beneficiaries will ensure they may make withdrawals without any hassle or charges.
PETALING JAYA: The EPF has rubbished a viral message claiming that a member’s entire nomination will be voided if they nominate more than one person as their beneficiary and one of them dies.
The retirement fund said only the portion bequeathed to the deceased beneficiary will be subjected to procedures spelt out under the “EPF savings without nomination” category.
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“In this case, the priority for the right to claim the dead beneficiary’s savings shall go to the next of kin or appointed administrator of his or her estate.
“The information in the viral message and chain email is not true,” it said in a statement.
However, EPF said if a member has named only one beneficiary who dies before the account holder, the nomination will then be deemed void unless a new beneficiary is proposed.
“That is why we advise members to check their nominations and update if and when necessary, particularly if the member has gone through life-changing events, such as marriage, divorce or birth of a child,” it said.
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It also denied another allegation claiming that members must go to EPF within three days to avoid their savings being “surrendered to Amanah Raya” if no nomination is made or if a member and their beneficiary die at the same time.
If a member dies without nominating a beneficiary, it said, certain conditions will apply for the withdrawal, depending on the amount they have in their account.
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“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.
“If the member has more than RM25,000, an initial sum of RM2,500 will be paid to the next of kin. The second payment (no more than RM17,500) will be paid two months after the date of death,” it said.
EPF said the balance of the whole savings will then be paid upon the submission of a letter of administration, grant of probate or a distribution order.
Muslims must obtain a faraid certificate from the estate administrators, such as Amanah Raya Berhad, the courts or land office.
“We wish to remind members that 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 all the documents will not be necessary and that the withdrawal process will be hassle-free and free of any charges,” it said.
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