Monday, July 19, 2010

KWSP Nomination

There are two things can not be WILL away
1. KWSP Nomination
2. Insurance Policy (with Cash Value)

Have you received an email from friend on EPF Rules as follows?
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Subject: EPF Rules- A MUST READ
If ONE (1) of your Nominees in the EPF Nominees list dies, automatically the whole arrangement (EPF Nominees list) is VOID .. Meaning if, you only put in One (1) name & unfortunately he/she dies before you - automatically EPF will channel your EPF money to trustee of AMANAH RAYA upon your death.
Even though if you have few names in the EPF Nominees list, - the whole arrangement is VOID & none of the individual names left in the EPF Nominees list will get their portion & automatically EPF will channel your EPF money to trustee of AMANAH RAYA upon your death.
Piece of advice - if any of the your Nominees in the EPF Nominees list dies, please do immediately approach the nearest EPF counter & present the Death Certificate of the individual & register your NEW / LATEST Nominee in the EPF Nominees list + NEW / LATEST percentage .
If, you & the other party (maybe spouse) involved in the same misfortune (accident / illness) that caused death to both yourself / spouse please, please, please alert your siblings / relatives / parents to immediately approach the nearest EPF counter & share the information within 3 days to AVOID all EPF money to be surrendered to trustee of AMANAH RAYA .
Upon surrender to trustee of AMANAH RAYA, your children will have to battle the money thru 3 channels;
Majlis Agama
Pejabat Tanah
Mahkamah
The normal period via above 3 channels usually takes 2-3 years (except if you have inside/tip top connection) at Amanah Raya.

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Ok, now, let see what i got...

1. You don't have to present the Death Certificate to update Nomination. Just submit a new form, the old one will be void automatically.

2. If a member has more than one nominee and one of the nominees dies during the member’s lifetime, only the portion that was bequeathed to the deceased nominee will be invalid. So, not the whole nomination will be void.

Ok, don't just trust everything from email from unknown source.

Source: unknown.... ha ha (Please visit www.kwsp.gov.my)


Some of the FAQs from www.kwsp.gov.my (Genuine and realiable source) -

1. I have made a nomination and at the same time I have also made a will. What is the status of the nomination and will?

  • The status of nomination supersedes the will. Payment will be made to the nominee/nominees that you have elected.

2. I did not nominate the beneficiary of my savings, but I have a will on my savings. What is the status of this will?

  • The will cannot be used to determine the beneficiary of your savings. Your next-of-kin needs to produce the Letter of Administration/Grant of Probate/Distribution Order to claim your EPF savings.


3. If a member did not nominate an heir or next of kin, but nominate other people, can the heir or next of kin make a claim on the savings?

  • If the nominee is not an heir, the heir or next of kin are not eligible to make any claims on the savings unless the nominee dies before the member whereby the nomination will be revoked and payments can be made to the heir or next of kin.

Source: http://www.kwsp.gov.my/index.php?ch=p2faqmembers&pg=en_p2faqmembers_nominate