What Malaysians must know about EPF nominations

In their website, the Employees Provident Fund (EPF) explains why nominating a beneficiary is important for the security of one’s family, long after they are gone.

“By planning ahead and nominating your beneficiary early, you can protect your loved ones from unnecessary complications and keep them financially secure even after you’re gone,” EPF says.

Here are a few things to know when deciding on a nominee:

• When you make a nomination, you are appointing an individual or institution to receive and oversee your EPF savings in the event of your demise.

• You can nominate one or more nominees, with EPF recommending you nominate your immediate family i.e. spouse, children or parents.

• Your nominee must be age 18 years and above, a Malaysian, a Permanent Resident (PR) OR a non-Malaysian (registered as an EPF member before Aug 1, 1998).

• You will need to bring a copy of your identification card or MyKad for Malaysian citizens (passport for non-citizen) and a copy of the identification document for each beneficiary.

• You do not need to have a witness for your nomination. This came into effect on Jan 1, 2017.

EPF nominations: Muslims

• The nominee for a Muslim EPF member is known as a Wasi (Administrator). The nominee’s function is to apportion a member’s EPF savings upon the member’s death to the rightful beneficiary in accordance with Islamic Law.

• An EPF member can choose to nominate Amanah Raya Berhad (ARB), who will then become the Administrator to ALL (100%) of the member’s savings.

EPF nominations: Non-Muslims

• The nominee for non-Muslim EPF members is the actual rightful beneficiary who will receive the savings upon the member’s demise.

• An EPF member can choose to nominate Amanah Raya Berhad (ARB), who will then become the Administrator to ALL (100%) of the member’s savings. If the nominee is below 18 years old, the ARB will act as trustee.

EPF (Discretionary) Death Benefit

The EPF may at their discretion, give an additional Death Benefit of RM2,500 subject to the following conditions:-

• Demised member is a Malaysian citizen.

• Demised member is below age 60 at the time of death.

• Application for Death Withdrawal is made within six months of the date of the EPF member’s demise.

FAQs

Q: Is it true that my nominee will NOT receive my savings if I pass away?
A: If you are a non-Muslim, this is not true. Your nominee(s) is your beneficiary who will receive your EPF savings.

If you are a Muslim, it depends. The distribution of EPF savings will follow your wasiat (lit. will) if all Faraid beneficiaries agree to the distribution. ELSE it will be distributed according to Faraid.

Q: Can I hibah (lit. gift) my EPF to ‘Unit Amanah’ or ‘Takaful’ to make sure that my EPF savings goes to my intended beneficiaries?

A: No. There is currently no way to hibah your EPF.

Q: Is my EPF nominee’s information incorrect especially if my old hardcopy records were computerised?

A: You can check these details online with EPF i-Akaun. You can also opt for your nominee information to be printed on your EPF statement so you can easily see if there are any changes.

Q: Can my will overwrite my EPF nomination?
A: No. Your EPF nomination takes precedence over your will.

E&OE. EPF logo and images are owned and provided by EPF. Visuals and information shared are on fair usage for illustrative and information sharing purposes. This financial education site is NOT an agent or appointed third party of EPF. Please check with EPF directly for any information on EPF products and services.

This article first appeared in https://mypf.my

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