A WAIT-and-see attitude and lack of awareness are two reasons many Employees Provident Fund (EPF) contributors have yet to name their beneficiaries.
Congress of Unions of Employees in the Civil Service (Cuepacs) Kedah branch chairman - said many also mistakenly believe that their relatives would be able to easily file a claim for their savings in the event of the their death.
“Many of them are thinking, let them figure it out for themselves when I pass away. What they do not know is that they are only making it difficult for their family members to make a claimed. Without nomination, the process will take longer.
Marital status was another factor for delay in nominating a beneficiary. The nomination is felt to be less significant when one is still single and has few responsibilities. However, once you are married, you will be more occupied and will hardly have time to go to the EPF office. So, this matter will drag on until something happens to the contributor.
The notion that the deceased's EPF savings would be distributed through “faraid” (division of wealth according to Islamic law) must also change.
“As Muslims, we are encouraged to follow the faraid system in the division of assets, including the EPF contributions, in the event of death. The beneficiary acts as ‘wasi’ (executor) or administrator who is responsible for distributing the savings of the deceased to other eligible beneficiaries.
“In short, the EPF nomination is the best way to facilitate the claim process. When the beneficiary is nominated, all parties are aware of who is entitled to the money. So, there is no need to waste time searching for the beneficiary before the savings are distributed according to the faraid system.
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