It is very Important to check your EPF Nomination (Penamaan KWSP)

Please check your EPF nomination to see

a) if the person that you have nominated tally with the record in the EPF and
b) if EPF has your nominated beneficiary names inside their record.

Earlier, I accompanied the daughter (Yin, not her real name) of my deceased client to inform EPF of the deceased and to claim the EPF monies only to be informed that her father has never made any nomination. Everyone in my deceased client’s office knows that he made his nomination but we do not have any prove for that.

EPF informed us that they computerized all nomination (penamaan) from 2000 onwards. In other words, any nomination made prior to 2000 is treated as “NOT nominated”.

As the result of that, Yin needs to bring her mother to claim the EPF monies. After a lot of hassle to prepare all the required documentation and running works, EPF now disburse the money to her mother’s bank account on monthly basis and not in lump sum.

In such case, I can see the advantage of doing that is to prevent misuse of EPF monies by the deceased’s family and also the family is able to enjoy dividend from EPF who at least guarantee at 2.5% per annum as compare to less that 1% if they would to put the monies in the bank.

The bad side would be what most people would think – “Hey, that one is my father/mother’s monies, how can EPF keep it for their own investment benefit. If I have the lump sum, I can invest it in property, share, unit trust or any business, I may be making double of what EPF offering.”

It is best that you keep a copy of the nomination form so that you or your family had proved that the nomination is being done.

I have spoken to many friends on this. Many said they would do it. But how many really take the effort to do it, I doubt! Come on, my friends! You work so hard so that your family is able to live a good life, why can’t you take a few hours off from work so to ensure that in the event of your sudden demise, your fruit of hard labour is being enjoyed by the right person at the right amount? Anyway the decision is yours! It is your money after all!