No need to renominate EPF beneficiaries, workers told

(The Star) – The Employees Provident Fund (EPF) has debunked talk that contributors must renominate their beneficiaries once they reach their retirement age.

They only needed to do so if they had made Age 55 withdrawals before Feb 1, 2008, said EPF public relations general manager Nik Affendi Jaafar.

(On Feb 1, 2008, the EPF made it compulsory for those who continue to work after 55 to remain contributing until the maximum age of 75 at a revised rate of 5.5% for employees’ contribution.)

A chain email has been circulating, in which the writer claimed that a sister-in-law had to go through the legal process to claim the funds left by her husband after he passed away at the age of 60.

The writer said: “EPF did not allow her to withdraw even though she was the sole beneficiary.

“According to EPF, one has to rename their beneficiaries at the age of 55, making all previous nominations void.”

Nik Affendi explained that the case was only true if members had made Age 55 withdrawals before Feb 1, 2008.

“Therefore if a member were to continue to contribute to the EPF, he would need to make a new nomination. However for EPF members who have made Age 55 Withdrawals after Feb 1, 2008, their nominations remain valid until a new nomination is made,” he said.

This also applies to members who are 55 years old but have not made the said withdrawal.

Age 55 Withdrawals refer to EPF members who took out their savings upon reaching 55.

The money, which could be withdrawn either in a lump sum or partially, is meant to provide financial support during their retirement period.