EPF Death Withdrawal

Most of the time, we are highly urged to name our nominees because the process of withdrawing EPF savings will not be as simple but may be more time- consuming. When there is no nominee, the EPF will pay the savings of the deceased member to the next-of-kin. He or she may apply to withdraw the deceased member’s savings by producing the following documents:

* Member’s death certificate
* Applicant’s identification card
* Letter of Administration which is produced by the High Court
* Documents that verify the applicant’s relationship with the deceased
* Marriage certificate
* Children’s birth certificate (if any)
* Personal savings account passbook

Payment will be made to the next of kin and is subjected to the member’s total savings as follows:

i) Member’s total savings is less than RM2,500
– All of member’s savings will be paid in full.

ii)Member’s total savings is more than RM2,500 and less than RM25,000
– Payment of RM2,500 will be made to the next of kin as the first installment.
– The balance will be paid out after two months from the date of death or payment in lump sum to the next of kin if the application is received 2 months from the date of member’s death.

iii)Member’s total savings is more than RM25,000
– Payment of RM2,500 will be made to the next of kin as the first installment.
– The second payment of not more than RM17,500 will be made to the next of kin after 2 months from the date of member’s death or payment of RM20,000 is made to the next of kin if the application is received 2 months from the date of member’s death
– The total savings balance will be made if Letter of Administration is produced.

So, if a member’s EPF savings are more than RM25,000, the process to obtain the entire savings takes more longer.

All this can be avoided if the member remembers to name his beneficiary. And, the next of kin can withdraw the portion without going though much procedures and terms & conditions.