EPF gives RM1.18b in death benefit to beneficiaries of members
KUALA LUMPUR: The Employees Provident Fund (EPF) gave RM1.18 billion in death benefit to beneficiaries or nominees of members who met the conditions from 1984-2013.
Deputy Minister of Finance Datuk Chua Tee Yong said statistics from 2007 to Oct 2014 shows that beneficiaries of 119,065 members had received death benefit while those of 6,212 members did not receive due to several factors.
"They include the application was made more than six months from the date of death, no savings when the application was made ??and the beneficiary named as nominee did not meet the conditions," he said replying to a question from Datuk Kamarul Baharin Abbas (PKR-Telok Kemang) in Dewan Rakyat here, today.
Kamarul Baharin wanted to know the amount of death benefit issued by the EPF to the beneficiaries of members since it was established.
Chua said that the death benefit was a compassionate aid to sympathise, help with the funeral arrangement and reduce the financial burden of dependants.
The conditions for death benefit include dying before reaching 55 years-old and the application was received within six months from the date of death.
In addition, the EPF will make a one-off payment of RM2,500 to dependants of members who had savings when the application for death benefit was made.
Chua said the EPF can use its discretion to give the death benefit to dependants such as widows, widowers, the children and parents of members.
He told Siti Zailah Mohd Yusoff (PAS-Rantau Panjang) that death benefit was a compassionate payment to sympathise with the family members.
Siti Zailah also asked whether the government was willing to consider raising the condition for death benefit to under 60 years-old.
"EPF members can still withdraw at 55 years with option for 55 years or 60 years although the retirement age has been raised to 60 years.
"EPF aims to provide retirement benefit to members and support in times of death. As such, the suggestion to raise the age limit for death benefit has to be studied," said Chua. – Bernama