EPF: Stop spreading fake news, stop stoking fear


  • IN 500 WORDS
  • Tuesday, 15 Sep 2020

THE latest viral message circulating in WhatsApp on the Employees Provident Fund (EPF) nomination and the automatic distribution of members savings to Amanah Raya Bhd has caused many a sleepless night.

It is similar to the previous message which first started circulating in 2017, which resurfaced last year and again more recently.

This is an unscrupulous and irresponsible act by someone or some group out to tarnish the image of the fund and create fear among members.

EPF has branded the latest WhatsApp message as fake news.

The message, among other claims, states that in the event where an EPF member has only one nominee or beneficiary, and that person dies before the member, the arrangement is deemed void and the EPF money or savings would automatically be channelled to Amanah Raya upon the member’s demise.

The same mechanism applies where there are multiple nominees. If a spouse of the member or both were to die due to illness or accident, the message said siblings, relatives or parents should immediately approach EPF and notify it within three days to prevent the EPF money from going to Amanah Raya.

EPF is a bedrock for retirees and members at large, and one should not make a mockery of it as it is is one of the world’s oldest provident funds.

Established in 1951, it helps the Malaysian workforce save for their retirement. As at the fourth quarter of 2019, EPF had close to a total of 14.6 million members, of which 7.63 million were active contributors.

On its website updated June 10 last year, EPF stressed that the viral message about EPF nomination being circulated via WhatsApp was not true. It is similar to a previous message about the automatic distribution of members’ savings to Amanah Raya, which was also untrue, it added.

It noted that in the event of a death, EPF would like to assure that a Muslim member’s children maintain their right as beneficiaries to the deceased’s savings, regardless if they were named as a nominee or not.

The nominee plays the role of a Wasi or administrator, and is responsible for distributing the portion of the deceased’s savings, deemed as inheritance, in accordance with Faraid law.

The fund further clarified that nomination would not be able to take effect if the nominee has not reached 18 years of age, as they are not eligible to act as Wasi based on existing legislation.

However, this does not mean that the member’s children under the age of 18 who were registered as nominees would not be able to exercise their claim on the deceased’s savings.

“Application for the withdrawal of the deceased’s savings will be processed as if no nomination had been made. The distribution of savings will be made based on the Faraid certificate or Distribution Order or Letter of Administration.

“For non-Muslim members, the nominee is the beneficiary/sole recipient of the deceased’s savings regardless of the nominee’s age, ” EPF noted.

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EPF , Amanah Raya , WhatsApp , Fake News , Stoking Fears

   

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