EPF members get 2% flat rate fee for appointing Amanah Raya as nominee

KUALA LUMPUR: Employees Provident Fund (EPF) members who nominate Amanah Raya Bhd as the nominee/ administrator or trustee of their EPF savings will be charged a two percent flat rate as an estate administration fee.

“As we have agreed with EPF, we are charging a flat rate of two percent to EPF contributors when it comes to estate administration.

“This is different from the tiered system of the services we are offering currently,” said Amanah Raya Bhd group managing director Adenan Md Yusof.

Currently, Amanah Raya charges an estate administration fee according to a multi-tiered system, ranging from one percent to five percent.

“We wanted to help EPF in terms of improving their services to their contributors,” he told reporters after a corruption-free pledge ceremony here on Monday.

“Naturally most EPF contributors would want their immediate family members especially their children to become the nominee.

“But sometimes, when they (EPF contributors) pass away at a very young age, their children are basically underage and they cannot become the nominee.

“So to me, the best thing to do to avoid such a situation – instead of appointing their children as their nominee, they can appoint Amanah Raya,” he added.

Last Thursday (Dec 14), the EPF board unveiled several key initiatives including an option for members to pick Amanah Raya as the nominee/ administrator or trustee of their EPF savings with effect from Jan 1, 2018.

The retirement fund said the appointment of Amanah Raya would enable faster and equitable distribution of members' savings to their next-of-kin, upon the members' demise.

“This new option is in addition to members' existing rights to appoint any individual persons as nominees,” it said then.