The Employees’ Provident Fund (EPF) is widely known amongst workers as the largest retirement fund which serves its purpose as a social security organisation for private sectors that provide retirement benefits. For that reason, it is advisable for EPF members to nominate and update the list of beneficiaries to ensure the smooth management of the distribution of their EPF savings upon their death.
Many people may think “It’s okay, I already made a will. There won’t be any issues for my beneficiaries upon my death” and completely ignore the importance of nominating and/or updating the list of beneficiaries for their savings. Unfortunately, they are not aware of the fact that EPF List of Nominees are statutory nominations which have been provided under Regulation 6 of the Employees Provident Fund Regulations 2001. Therefore, a will does not supersede EPF List of Nominees. We further refer to Regulation 7(2) of the Employees Provident Fund Regulations 2001 which clearly states as follows:
“Nominee stated in subregulation (1) shall not be revoked by any will or by any other act, events or means”
Due to such a lack of awareness, many disputes arose upon the death of EPF members where the family members of the deceased became the victims when the savings that they were counting on had to go to someone else. This is due to the reason that the deceased had either gone through a divorce, marriage and the death of the beneficiary nominated in the EPF list of nominees during his lifetime but the deceased did not update the particular list. Plus, he was also in mind that his will would suffice to ensure the distribution of his savings towards his chosen beneficiaries.
Overall, it is apparent that every person who made a will must aware that a will does not supersede EPF List of Nominee. Thus, it is advisable to be nominated and/or update the list of beneficiaries in the EPF List of Nominee for the sake of your loved ones. Better late than never.