Do you know anything about updating your beneficiary listing with Employees Provident Fund ("EPF") even though you knew that you have nominated a number of names there some time back. Just when you thought you have done everything required, please read the following Q&A and you'll understand better.
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Dear Reuben,
Thank you for your query which has been referred directly to me by Mr. Ewe Jin. Please find our responses below:
1. What precedes the EPF.....the will or the EPF nomination?
The EPF nomination will always super cede the will.
2. Suppose I nominate 25% each for my son and daughter and the remainder 50% for my spouse, if an accident were to befall both of us, then what happen? Will my children be getting 50% each automatically?
· Should an EPF member dies at the same time as his or her nominee, the nomination portion that was bequeathed to that nominee will be invalid. Therefore if an accident were to befall both you and your spouse, 50 percent cent of your EPF savings or the nomination portion which has been bequeathed to your spouse will be invalid.
· This 50 per cent will be subjected to procedures under 'EPF savings without nomination' in which the first priority for the right to claim the member's savings goes to the appointed administrator of the deceased member's estate.
· This therefore means that 50 per cent of your EPF's savings will not be paid automatically to your children
3. Furthermore, if fate would have it that the 4 of us suddenly meet our maker, then what is the outcome?
· The same principle applies as above i.e. the nominations will be invalid. In such a case, withdrawal of EPF savings will be subjected to procedures under 'EPF savings without nomination' in which the first priority for the right to claim the member's savings goes to the appointed administrator of the deceased member's estate.
I hope the above answers have helped to shed some light to your queries. If you have any other queries, please email me.
Thanks and best regards,
Nik Affendi Jaafar
General Manager,
Public Relations, EPF
----- Original Message -----
From:Reuben PuanTo:ewejin@thestar.com.my
Sent: Monday, June 15, 2009 10:20 PM
Subject: About EPF Account
Hi Ewe Jin,I am Reuben. I read your Monday articles with interest. I should be going to the EPF web site for further details but I think there are still a lot of ignorant people around and maybe also some instances of mixed up at the EPF office. Maybe you should also highlight the following.
1. What preceed the EPF.....the will or the the EPF nomination?
2. Suppose I nominate 25% each for my son and daughter and the remainder 50% for my spouse, if an accident were to befall both of us, then what happen? Will my children be getting 50% each automatically?
3. Furthermore, if fate would have it that the 4 of us suddenly meet our maker, then what is the outcome?
Thanks.
Regards,
Reuben Puan
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Find out more in the EPF FAQ on Nomination. After reading it, go get your company's HR Dept to organise a nomination campaign with EPF to come to your office to do an exercise for everyone. HR Dept's work is not confined to recruitment and payroll only.
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