EPF’s Death and Incapacitation Benefit - Tee Yong clarifies

It has come to my attention that there are sections of the public who are not aware that the Employees Provident Fund (EPF), aside from safeguarding our lifelong retirement fund also has other benefits for its members and their families in times of need.

Among those are “death and incapacitation benefits” which are not paid from the members’ savings but from EPF’s investment earnings.

From January 2014 till June this year, a total of 8,410 cases was approved for death benefit of RM 2,500 with a total sum of RM 21 million as compared to RM 37.4 million in 2013. Similarly, for incapacitation benefit of RM 5,000, a total of 359 cases was approved from January 2014 till June this year with a total sum of RM 1.79 million as compared to RM 3.99 million in 2013.

These benefits however are not automatically paid in the event of the member’s death. The member’s nominee/next-of-kin may apply to withdraw the member’s savings and payment is subject to the terms and conditions under Death Withdrawal.

To be eligible for Death Benefit, the deceased member must be a Malaysian citizen who must not have reached the age of 55 at the time of death and has savings in his/her account. Applications must be made within 6 months from the date of the member’s death. The Death Certificate, Marriage Certificate and other relevant documents are necessary for this application.

For Incapacitation Benefit, the member must be a Malaysian citizen who has not attained the age of 55. Applications for incapacitation withdrawal must be made within 12 months from the date of unemployment/termination. The final service duration must be in at least 6 continuous months and if terminated by the employer, it must be due to incapacitation and not on voluntary basis or disciplinary action.

In addition, there were cases whereby the deceased member’s next-of-kin encounter difficulties in withdrawing the member’s savings because the “nomination” was not updated since they were first registered as an EPF member. There were incidents where the deceased member’s EPF savings were claimed by others such as former close acquaintances or other relatives instead of their next-of-kin.

More details are available in the EPF website under “Benefits As An EPF Member” within “Member’s Responsibility” and “Registration” link.

YB Datuk Chua Tee Yong

Timbalan Menteri Kewangan II

Labis Member of Parliament

MCA Vice President

MCA Economic Consultative Committee Chairman

Concerned Malaysian