KWSP – watch out for scam!

Sent: Thursday, November 19, 2009 5:46 PM
Subject: Penyebaran Emel Berantai Berkaitan Penamaan & Pengeluaran Ansuran Bulanan Pinjaman Perumahan KWSP

Assalamualaikum & Salam Sejahtera,

Tuan / Puan,

Dimaklumkan bahawa sejak kebelakangan ini, emel berantai ( chain emails ) berkaitan Penamaan dan Pengeluaran Ansuran Bulanan Pinjaman Perumahan didapati telah diedarkan semula. Emel sebegini boleh mengeliru dan menjejaskan imej KWSP.

Untuk makluman tuan/puan, kedua-dua emel berantai berkaitan telah diambil tindakan sebelum ini melalui emel dan kenyataan akhbar. Sekiranya tuan/puan masih menerima emel sebegini, tuan/puan boleh membalas emel tersebut dengan menggunakan contoh jawapan yang disediakan. Panduan jawapan ini juga boleh digunakan sekiranya tuan/puan menerima pertanyaan di kaunter atau melalui talian telefon. Disertakan contoh emel berantai dan jawapan kepada emel tersebut untuk makluman dan tindakan tuan/puan .

Oleh kerana emel sebegini sering berulang setiap 3 atau 4 bulan sekali, saya cadangkan tuan/puan menyimpannya dalam bentuk soft copy untuk rujukan dan tindakan di masa hadapan.

Sila berkongsi maklumat ini bersama anggota di bawah seliaan tuan/puan.

Sekian, terima kasih.

Nik Affendi Jaafar
Pengurus Besar
Jabatan Komunikasi Korporat


1. Chain Email on Nomination

Subject: EPF Rules: A must read

If ONE (1) of your Nominees in the EPF Nominees list dies, automatically the whole arrangement (EPF Nominees list) is VOID . Meaning if, you only put in One (1) name & unfortunately he/she dies before you ? automatically EPF will channel your EPF money to trustee of AMANAH RAYA upon your death.

Even though if you have few names in the EPF Nominees list, – the whole arrangement is VOID & none of the individual names left in the EPF Nominees list will get their portion & automatically EPF will channel your EPF money to trustee of AMANAH RAYA upon your death.

Piece of advice – if any of the your Nominees in the EPF Nominees list dies, please do immediately approach the nearest EPF counter & present the Death Certificate of the individual & register your NEW / LATEST Nominee in the EPF Nominees list + NEW / LATEST percentage .

If, you & the other party (maybe spouse) involved in the same misfortune (accident / illness) that caused death to both yourself / spouse please, please, please alert your siblings / relatives / parents to immediately approach the nearest EPF counter & share the information within 3 days to AVOID all EPF money to be surrendered to trustee of AMANAH RAYA .

Upon surrender to trustee of AMANAH RAYA, your children will have to battle the money thru 3 channels;
• Majlis Agama
• Pejabat Tanah
• Mahkamah

EPF’s Response:

Dear friends,

This is EPF’s explanation:-

• If a member has more than one nominee and one of the nominees dies during the member’s lifetime, only the portion that was bequeathed to the deceased nominee will be invalid.

Should the member later dies without updating his nomination, the other nominees will receive their portion accordingly. Only the portion that was bequeathed to the deceased nominee will be subject to procedures under ‘EPF savings without nomination’ in which the first priority for the right to claim the member’s savings goes to the nearest next of kin or the appointed administrator of the deceased member’s estate.

Therefore it is not true that if you, as a member, have named more than one nominee, the entire nomination will be void if one of the nominee dies before you. It follows however that if you have named only one nominee and he or she dies before you, the nomination will be void unless a new beneficiary is nominated.

• Please note that you don’t have to produce the death certificate of a deceased nominee to change your nomination. You can change/update your nomination anytime by simply completing a new KWSP 4 (AHL) Form. This will automatically revoke any earlier nomination made.

• The information concerning approaching EPF counter within 3 days to avoid EPF savings being ‘surrendered to Amanah Raya’ if no nomination is made or if nominee dies at the same time as the member is not true .

Depending on the amount of savings in the member’s account, if there is no nomination the procedure will be as follows:

If member’s EPF savings are less than RM2 5 ,000:

Ø Initial sum of RM2,500 will be paid to the next of kin.
Ø The balance will be paid after a two-month period from the date of the member’s death.

If member’s EPF savings are more than RM2 5 ,000:

Ø Initially a sum of RM2,500 will be paid to the next of kin.
Ø The second payment (not more than RM17,500) will be paid to the next of kin after two months from the date of the member’s death.
Ø The balance of the savings will be paid upon submitting the Letter of Administration/Letter of Probate/Distribution Order/Faraid Certificate from the party that administers estates such as Amanah Raya Berhad or the Court or the Land Office, respectively. The process to obtain these documents is time-consuming and certain fees will also need to be paid. On the other hand, with nomination, no fees need to be paid.

This is precisely why nominating is very important. You should also ensure that you update your beneficiary whenever there is any major life changes such as marriage, additional new members or the death of a nominated beneficiary.

Please help to clarify the issue by forwarding this clarification to all your cyber friends.

2. Chain Email on Dividends on Monthly Housing Withdrawals

Subject: Is it a SCAM by KWSP?

Remember during Budget 2008 announcement last yr, our Finance Minister cum PM) announced that in order to assist KWSP members to reduce the burden in housing load repayment, KWSP will allow monthly withdrawal from members’ A/C II for the purpose?

Sounds like a nice goodies!

When you apply for the monthly withdrawal, you only need to provide KWSP yr housing loan & installment details from yr bank and the bank a/c # you like KWSP to bank the monthly withdrawal into it. KWSP will approve yr application based on the available amt in yr A/C II and compute the withdrawal period by dividing the approved amt with the monthly installment amt.

Application process takes about a month and you will receive the monthly payout promptly into yr bank a/c!

Well everything appear to be nice and good. It was indeed a noble plan until you take to close look at yr KWSP Statement!

This is how the so-called KWSP SCAM works…….

Assuming you have RM100,000 in yr A/C II and yr housing loan’s monthly installment is RM2000/mth.

KWSP will approve yr application of withdrawal from yr A/C II of RM100,000 and pay you Rm2000/mth for the next

Everything appears to be in order BUT…….. What KWSP didn’t highlight to you is that when the application was approved, the TOTAL AMT (RM100,000) is removed from A/C II! It appears to be transferred to an unknown a/c to effect the monthly payment from therein..

The impact to the member are as follows :-

1. You just lost RM100,000 from yr A/C II. Assuming the KWSP Dividend is 5%, you will lose RM4,000 in dividend during the 1st year. Based on the above example you will lose RM10,000 over the 50 mths period!

2. There is no statement to account for the amt approved vs. amt paid, hence you would need to keep the monthly payment voucher to reconcile against the approved amt over the 50mths period to ensure there is no missing amt!

Assuming there are 100,000 members who innocently fell prey to this SCAM, based on the above example, KWSP would have cheated the members of 100,000 X RM10,000 = RM1,000,000,000 (that’s RM1 BILLION) over the period!

Furthermore, if you discovered this SCAM early and intend to stop the plan, KWSP would not allow any cancellation of the plan until at least 1 year. That would mean, once the application is approved, based on the above example, you would have lost RM4,000.

100,000 members would have lost 100,000 X RM4,000 = RM400,000,000(RM400 MILLION) in One Year!!!

If you’re a victim of this KWSP SCAM, would suggest you call yr MP to raise it up in Parliament!

For others who have not fallen into this SCAM, pls continue to watch out and alert yr family & friends about this.


EPF’s Response:

Dear friends,

The above email is untrue. The EPF has in fact issued a press statement regarding the issue in October 2008 as attached below. Please forward this to all your cyber friends to clarify the issue.


The Employees Provident Fund (EPF) would like to state that members’ savings that have been kept aside in a separate account for withdrawals under Housing Loan Monthly Instalment Withdrawal will continue to receive dividends accordingly. This statement comes in response to recent emails and blogs that state the EPF does not pay dividends on the said amount.

When a member’s application for Housing Loan Monthly Instalment Withdrawal is approved, the total amount of savings that will be taken out from Account 2 for the purpose of this withdrawal will be put aside in another account. The reason for this is to separate the amount from the main account, as funds allocated for this withdrawal cannot be used for other withdrawals from Account 2. In addition, it serves to facilitate as well as monitor the monthly payments.

The EPF would like to reiterate any savings that are still with the EPF will continue to earn dividends annually up until the member reaches the age of 75. Accordingly, the savings that have been kept aside and are committed for withdrawals under Housing Loan Monthly Instalment Withdrawal will continue to receive dividends for the year. The dividends on this amount will be credited into Account 2 after dividend for the year is declared.

In any case, the Housing Loan Monthly Instalment Withdrawal was introduced in January 2008 and as dividend for 2008 is yet to be declared, there is no issue of the EPF not paying dividends on the said amount.

We hope that this statement will put to rest any confusion regarding this issue. The EPF wishes to assure its members that it is committed to protecting members’ interests and enhancing the value of their savings.

Senior Manager, Public Relations
Employees Provident Fund
Date: 30 October 2008

One thought on “KWSP – watch out for scam!

  1. YOGESWARY A/P GUNASAIGARAN October 15, 2010 at 10:56 am Reply

    yogeswary wrote:

    my name is as above my ic no is xxxxxx-07-5332, please send me my KWSP number.
    my new amployer need it. thank you

    Yoges, please deal direct with KWSP. you can the KWSP office nearby your area. This blog doesn’t have any relationship with KWSP. Thank you.

    – Moderator

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