EMPLOYEE'S PROVIDENT FUND (EPF)

This is an important reminder on EPF beneficiaries. Kindly forward to your

friends especially the Non-Bumi. Make sure they do the necessary to name
their beneficiaries. Be a help and pass this info to all your friends. It
pays not to be ignorant. Please read on and do take the appropriate action

of naming your EPF beneficiaries or updating your nomination :

1) Scenario, Imagine this :
A EPF contributor with a non-working wife and 3 school-going children.
He died unexpectedly of a heart attack. He has been contributing to the
EPF since he started work as an engineer about 25 years ago and have a
sizeable amount of savings. However, the widow approaches the EPF for the
savings
she is informed that he had named his 1st girlfriend as the beneficiary
and never got to updating his nomination. Therefore, the widow is not
entitled to a cent of the money even you have a will .

(In case of Muslims, there is still recourse under the Syariah Laws)

For Non-Muslims, however, there is real concern that your life-long
savings may not reach your dependants.) The above scenario may seem
unlikely to you but such cases are very common.

2) Findings of the EPF.
Many EPF contributors either do not name any beneficiary or else fail to
update their nomination as conditions warrant. As it stands, about 76% of
EPF's 8.51 million members have not made any nomination. And out of the
24% who have, many have not updated their nomination. All your savings and
the dividends accumulated over the years may not go to those who need it
the most if you do not name a beneficiary or do not update your nomination.


What happens if :-
a) Failure to make a nomination.
If a EPF member has not made any nomination, his savings will be
distributed in accordance to the law.

Letters of Administration (LA)
In general, when no nominee is named, the member's family will have to
produce what is known as LA and submit this to the EPF in order to withdraw
the savings. (The LA authorises the person appointed to act as
administrator of the estate of the deceased member. This involves
employing the services of a lawyer who will make the relevant petitions to
court to get the LA. The whole process takes 8 to 12 months,
or longer if more than one person decides to obtain the LA).

Grant of Probate (Probate)
If the member had made a will, the member's family will have to produce
what is known as Probate and submit this to the EPF.(The Probate is an
authorisation by the court to the executor named in the will to administer
the distribution of the estate of the deceased member).

a) Distribution Order
If the money in question does not exceed RM 600,000 (and there is no land
involved), the family of the deceased can then approach the Public Trustee
(Amanah Raya)! to obtain a Distribution Order.

b) Consequence of failing to update nomination
If the member does not update his nomination, whoever the EPF contributor
has named as his or the beneficiary in the Form KWSP 4 (AHL) will receive
the member's entire savings. Therefore, the spouse and family of the
deceased will receive nothing if the contributor has named someone else,his
friend, as his EPF beneficiary. This friend will inherit his savings even
if the contributor had named his spouse and children as beneficiaries to
his property, including his EPF savings, in a will is made after the EPF
nomination.

c) Muslim contributors,
They are governed by the inheritance regulations under the Syariah Laws.
The term "beneficiary" does not apply to the person nominated by a muslim.
The nominee in effect only acts as an executor(wasi) of the contributor's
savings. Upon the contributor 's death, this executor has a duty to
distribute the deceased's property in accordance with Faraid
(inheritance)Laws.

3. How does one make a nomination or update a previous one ?
You can do it by completing the Form KWSP 4 (AHL) which can be obtained at
the EPF offices. You have to fill in a new KWSP 4 with the name of the
person you now want to inherit your EPF savings. The new form will
automatically cancel your previous nomination...... The advantages of
naming a beneficiary and keeping this nomination updated are enormous.
It not only ensure that your savings will goto those who need it most, but
also guarantees speedy payment to your loved ones in such a time of need.
If all the documents are in order, your nominee will get your EPF savings
in about a month.

4. Locations of EPF Offices
* Menara Komtar, Paras 47, Penang
* Wisma KUWASA, Ground Floor, Jalan Raja Laut, Kuala Lumpur.
* Bangunan Yayasan Selangor, near AMCOP Mall, Petaling Jaya
* Wisma Peransang, Shah Alam, Selangor Darul Ehsan.
* Wisma Emerald, Jalan Meru, Klang, Selangor Darul Ehsan.
* Bangunan EPF, Johor Bharu (center of the city, opposite Wisma Imigresen)
* Wisma Keladi, Aras 1 & 2, Jalan Bank, Sungai Petani.
* Menara Zakat, Aras 5-9, Jalan Telok Wanjah, Alor Star