KUALA LUMPUR: When non-Muslims register their marriage, past nominations of
the beneficiaries of their EPF savings may automatically be revoked.
Contributors to the Employees Provident Fund will have to resubmit their
nominations to make sure that the person they intended benefits upon their
death.
This will also protect the interests of their spouses as many people start work
before they marry, and nominate their parents.
"While there is nothing wrong with nominating their parents, few contributors
revise their nomination forms after marriage.
"When this happens, the spouse of a non-Muslim contributor can lose out as he or
she will not receive the savings," said EPF deputy chief executive officer II
Rusma Ibrahim.
The Bar Council’s Law Reform and Special Areas Committee has suggested an
amendment to EPF regulations that previous nominations be revoked upon marriage.
"The committee submitted its proposal in January, recommending that the
Employees Provident Fund Regulations 1991 be amended so that past nominations by
non-Muslims are revoked upon their marriage," said Rusma.
This is to ensure that the dependents will benefit from the savings if someone
dies.
"For that reason, the EPF feels that this is a good idea," Rusma told the New
Straits Times.
The problem, however, exists only for non-Muslims.
"A Muslim’s nominees are also his estate administrators. They must distribute
the contributions in accordance with Islamic law. Therefore, the deceased’s
dependents will eventually benefit from his savings.
"A non-Muslim’s nominees are the beneficiaries and they are not obliged to share
the money with the dependents," she said.
There are about 11.3 million EPF contributors, and 62 per cent have not even
named their nominees. About a quarter of those who have done so have not made
any revisions.
"If the amendment goes through, the EPF will ask contributors to rename their
nominees after their marriage.
"If they choose to name the same person and not the new spouse, we will know
that it is their intention that that person benefits."
Rusma said she hoped to meet with the Law Reform and Special Areas Committee
soon to discuss the proposal before she took it to the EPF board.
Committee chairman Datuk M. Ramachelvam said he was happy with the positive
response.
"This is an important issue which needs to be addressed. A lot of people don’t
benefit from their spouse’s savings because someone else was nominated.
"In some cases, even former lovers or ex-girlfriends were named," he said.
2012 Bar Council Subscription Click the link above to download Circular 072/2012 pertaining to the 2012 Bar Council subscription, including the payment guide and a set of Frequently-Asked-Questions.
2012 Hotel Corporate Rates Attending seminars? Going for a holiday? Click on the link above to check out the list of hotel corporate rates for Members of the Bar, which is updated regularly.
Bar Council Bookshop Read MORE … but pay LE$$! Members enjoy a 20% discount on LexisNexis publications at the Bar Council Bookshop. Click on the link above for the list of available titles.
International Malaysia Law Conference (26 to 28 Sept 2012) Hurry up! The countdown continues and the current promotion rate ends 30 June 2012. Don't miss what is going to be the best conference in the region! On top of that, if you sign up with 5 or more people from the same organisation, we will give you a 10% group discount. Click on the link above to register.
Talk on Summary Judgement (25 May 2012) Organised by the Selangor Bar Committee, this talk will take place at 5:00 pm, at the Selangor Bar Committee Auditorium, on 25 May 2012 (Friday). The talk will be conducted by Ramesh Supramanian. Click on the link above for more details.
Seminar on Tax Issues in Financial Transactions (25 May 2012) Organised by the Kuala Lumpur Bar Professional Development Committee, this seminar, featuring S Saravana Kumar, will take place at 3:00 pm, at the Kuala Lumpur Bar Auditorium, on 25 May 2012 (Friday). Click on the link above for more details.
Dialogue with Criminal Law Practitioners (26 May 2012) Organised by Bar Council, this dialogue will take place at 10:00 am to 12:00 pm, at the Raja Aziz Addruse Auditorium, Bar Council, on 26 May 2012 (Saturday). Click on the link above for more details.
Conference on Competition Law (31 May 2012) Organised by Bar Council with the support of LexisNexis, this conference will take place at 8:30 am to 4:00 pm, at Renaissance Kuala Lumpur Hotel, on 31 May 2012 (Thursday). For more details or to register, please contact Vilashini Vijayan (03-2050 2095; vila@malaysianbar.org.my). Click on the link above for more details.
Talk on What Clients Want (7 June 2012) Organised by the KL Bar Practitioners' Affairs Committee, the talk, presented by Ong Eu Jin, will take place at 5:00 pm, at the KL Bar Auditorium, on 7 June 2012 (Thursday). Click on the link above for more details.
4th LAWASIA Family Law Conference, Penang (13 and 14 July 2012) Supported by Penang Bar Committee and the Malaysian Bar, this conference, themed “The New Global Family: Emerging Trends and Challenges to Family Practice”, will take place at Traders Hotel, Penang, on 13 and 14 July 2012 (Friday and Saturday). Click on the link above for more details.
About Us 
©
Subscribe to this comment's feed
Circular No 109/2012: Be a Part of the Bar Council Constitutional Law Committee
