S0ME “UNFAMILIAR” FEATURES OF THE
EMPLOYEES PROVIDENT FUND (MALAYSIA) THAT MEMBERS/CONTRIBUTORS OUGHT TO KNOW……………………………
(Foreword:
What I am sharing now is for the benefit of Employees Provident Fund (EPF) members
in the two categories – (1) Those who are still contributing regularly to their
respective account in the fund; (2) Retirees who have ceased contributing but
still maintain some balance amount in the fund. To my many friends who are
already above 55 years old (some already retired, some still working) and still
EPF members, I hope this article would enlighten them if at all relevant for
their attention.
NOMINATION
Sometime ago, there was an e-mail circulating regarding the
plight of a widow who could not immediately claim from her deceased husband’s EPF balance of RM30,000. She said she was the
sole nominee named by her husband. In the end, she had to seek the assistance
of Amanah Raya (public trustee) to legally claim the money.
Was this allegation true? Perhaps so, but I believe certain facts
relating to the issue were not mentioned. As the balance amount was only RM30,000,
I believe the deceased had made partial withdrawals before his demise. Perhaps,
that was the crux of the issue. A couple of questions are most relevant to the
so-called plight of this widow. Question 1:
Did the deceased EPF member apply
for any Age 55 withdrawal? Question 2: Which year did he apply for the
withdrawal? – was it before Feb. 1 2008?
Now, allow me to share with you some excerpts extracted from
the Members’ Guide (below).
Quote:
“There will be changes to
the nomination status when you make the Age 55 Years Withdrawal during the
following periods:
·
Before
1 November 2007
If
you make the Age 55 Years Withdrawal, then the nomination made prior to this
will be revoked.
·
Transition
Period (1 November 2007 – 31 January 2008)
If
you make the Age 55 Years Withdrawal and opt for a lump sum payment of savings,
the nomination prior to this will be revoked. If you are still employed and opt
to re-contribute, you will be required to make a new nomination.
If
you make the Age 55 Years Withdrawal and opt for partial savings withdrawal,
then the nomination made before this will remain in effect.
·
Starting
1 February 2008
If you
make the Age 55 Years Withdrawal and opt for whichever method of payment, the
nomination made before this will remain in effect.”
DIVIDENDS
Quote:
“All EPF contributions
will be paid dividends until the member attains the age of 75 years. A minimum
dividend of 2.5% is assured by the government. The dividend given to you is
based on monthly and yearly balances.
The dividend for every
member’s account is calculated based on aggregate daily balance.”
INCAPACITATION AND
DEATH BENEFITS
Quote:
“The Incapacitation and
Death Benefits are a good gesture by the EPF, payable to the member/guardian or
beneficiary to help lessen the financial burden when the member suffers from
incapacitation or in the event of death. The money comes from EPF investment
earnings and not from the member’s savings.”
INCAPACITATION BENEFIT
(INCAPACITATION WITHDRAWAL
Quote:
“The Incapacitation
Benefit is paid to the member who has lost his job owing to incapacitation and
has made an Incapacitation Withdrawal. The amount for Incapacitation Benefit is
RM5,000.00. This benefit will be given once only, subject to the following
conditions:
·
*Malaysian
citizen;
·
*Member has
not attained the age of 55;
· *
Applied
for Incapacitation Withdrawal within 12 months of the date of termination of
service;
· *Last
period of service must be at least 6 continuous months;
·
*Reason for
termination of service must be incapability to work and not disciplinary action
or voluntary resignation.”
DEATH BENEFIT (DEATH
WITHDRAWAL)
Quote:
“The Death Benefit is
paid to the member’s dependant or next-of-kin, subject to consideration by the
EPF, when the application for Death Withdrawal is made. The amount for Death
Benefit is RM2,500.00 This benefit will be given once only, subject to the
following conditions:
·
*Malaysian
citizen;
·
*Member has
not attained the age of 55 years at the time of death;
· *
Application
for Death Withdrawal is made within 6 months of the date of demise of the
member.”
MATRIMONAIL ASSET
CLAIM
Quote:
“Can you claim a portion of your spouse’s
EPF savings in the event of a divorce?
Yes, in the event of a
divorce of non-Muslim members. The
ex-wife or the ex-husand can make a claim on the EPF savings of the former
spouse as a joint matrimonial asset upon obtaining a court order.
This application can
be made within 6 years of the date of enforcement of the court order. If all of
the savings in the EPF account are covered under the matrimonial asset claim,
then the claimant or claimant’s beneficiary will not be entitled for
Incapacitation Benefit or Death Benefit.
The claimant may also
nominate a beneficiary for the matrimonial asset.”
(Note to EPF members: For full understanding of the features
and benefits, get hold of the Guide.)
