EPF's Response

The EPF emphasises that the information in the chain email is NOT TRUE. If a member has nominated more than one beneficiary and one of them dies, only the portion that was bequeathed to the deceased beneficiary will be invalid. If the member later dies without updating his/her nomination, the surviving beneficiaries will receive their portion accordingly. 

Only the portion that was bequeathed to the deceased beneficiary will 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 next of kin or appointed administrator of the deceased member's estate.

Hence, it is not true that when a member has named more than one beneficiary, the entire nomination will be deemed void when one of the beneficiaries dies before the member. However, if a member has named only one beneficiary and the beneficiary dies before the member, the nomination will then be deemed void unless a new beneficiary is nominated.

Please note that members do not have to produce the death certificate of a deceased beneficiary to change their nomination. Members can change or update their nomination anytime by completing a new KWSP 4 Form. This will automatically revoke any earlier nomination made.

Another allegation in the chain email which mentioned that members need to go to the EPF counter within three (3) days to avoid the EPF savings being "surrendered to Amanah Raya" if no nomination is made or if a beneficiary and the member die at the same time is also not true.

If a member dies without nominating a beneficiary and depending on the amount the member has in his/her EPF account, the following conditions will 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.

The EPF wishes to remind that obtaining these documents can be time-consuming and fees may be imposed by the issuing authorities. By nominating beneficiary(s), members will be able to ensure that all the documents will not be necessary and that the withdrawal process by his/her beneficiary(s) will be hassle-free and free of any charges.

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.

This is why nomination is very important. Members are also advised to check their nomination 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.