What is an EPF nomination?
This is the act of appointing an individual or institution to receive and oversee your EPF savings in the event of your death. If you do not wish to nominate, please include a residuary clause in your Will to ensure the funds can be distributed according to your wish. Otherwise, please book an appointment at the nearest EPF office to you for the nomination process.
As of 2017, you do not need a witness for your nomination. Download the KWSP Form 4 at this link: https://www.kwsp.gov.my/documents/20126/147596/KWSP_4.pdf/6d6ec738-990d-eb0b-d6d1-f6442650de58?t=1547689170980
Documents required for nomination:
- Completed nomination KWSP Form 4
- Your Mykad/ ID /Passport
- Copies of your beneficiaries ID
Why should every EPF member make their nomination?
Most EPF member’s net worth is tied to their funds in EPF. However, more than 50% of the members have yet to nominate their beneficiaries. 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. Your dependent will also be considered for the Death Benefit to support them through this difficult time.
What is the EPF Death Benefit?
The Death Benefit is a gesture of compassion by the EPF to the member’s next-of-kin (under EPF’s discretion) if the member is <60 years old and application for Death Withdrawal is made within six months of the date of the member’s demise. A one-time payment of RM2,500 will be considered and awarded to any of the deceased member’s eligible dependents. (widow/widower, child, or member’s parents subject to member’s marital status).
Who can you nominate?
You should ideally nominate someone younger than your parents in the event of their demise before you. Any individual above the age of 18 can qualify as your nominee.
For Muslim members, you may nominate a Wasi/Administror to apportion your EPF savings upon your death to the rightful beneficiary in accordance with Islamic Law. You can also appoint the Amanah Raya Berhad (ARB) which means, ARB will become the Administrator to all (100%) of your EPF savings.
What if one or more of my nominees is deceased?
Only the portion assigned to the deceased nominee will be invalidated and the money will remain with EPF. The member’s beneficiary may apply for death withdrawal thereafter.
For Muslim members, a nomination will only be invalidated if the nominee/administrator fails to make a withdrawal application within one year from the member’s date of death.
What if you die without nomination, who can claim your EPF money?
If you’re married – your spouse, children (guardian), parents, siblings or Administrator
If you’re unmarried – parents, siblings or Administrator
What happens when no nomination is made and no one comes forward to claim?
Any unclaimed savings will remain with the EPF and will only be transferred to the Registrar of Unclaimed Monies upon Member reaching age 100.
Can my Will overwrite EPF nomination?
No. Your EPF nomination takes precedence over your Will.