EPF (EMPLOYEES PROVIDENT FUND) Qs : Can my divorcing spouse make claims to my EPF?

Excerpts from the internet :

Circular No 113/2021
Dated 26 Mar 2021

To Members of the Malaysian Bar

Matrimonial Assets Claims Pursuant to Section 53A of the Employees Provident Fund Act 1991 The Legal Department of the Employees Provident Fund Board has extended to us a notification (via email) entitled “Makluman Mengenai Tuntutan Harta Perkahwinan Menurut Seksyen 53A Akta KWSP 1991”, dated 24 Mar 2021, pertaining to claims of matrimonial assets pursuant to section 53A of the Employees Provident Fund Act 1991.

The purpose of this post is to create awareness of divorce issues with regards to the following :

Tag words -

** Single Petition Divorce

** Mutual Petition Divorce

** Judicial Separation

** Marital / Matrimonial Assets

** EPF is a marital asset (T&C apply)

Matrimonial Assets Claims Pursuant to Section 53A of the EPF Act 1991

Excerpts :

Generally, monies in the Employee’s Provident Fund (EPF) are not automatically being regarded as a matrimonial asset when parties to a marriage file for divorce. However, the court may declare EPF monies as a matrimonial asset upon application by a party to the marriage (usually the wife claiming ex-husband’s EPF monies).
 
Section 53A of the Employee’s Provident Fund Act 1991 states that once the sealed court order is served on the EPF by a claimant, EPF will transfer the monies in the claimant’s ex-spouse’s EPF account to the claimant’s EPF account, subject to EPF’s terms and conditions. The transfer of monies will be duly made upon receipt of the court order and not until the ex-spouse reaches 55 years old. The transfer of monies from the ex-spouse’s EPF account to the claimant is subject to the amount of monies available in the ex-spouse’s EPF account.
 
Despite the transfer of monies to the claimant’s EPF account, the claimant may not withdraw the amount until one of the following events occur:

1. the claimant dies (withdrawal will be done by the nominee of the estate);
2. the claimant reaches 55 years old;
3. the claimant is physically or mentally unable to work;
4. the claimant is not a Malaysian citizen  / (Foreigner)and is going to leave Malaysia for good.

The moral story to the above.. make sure both husband & wife is working with EPF Savings Account. Otherwise the  self employed is in the distinct advantage with little or no EPF savings..

Another useful read :

https://www.lawyerment.com/answers/questions/14247/spouse-visa-expiring-and-husband-refuses-to-renew-or-support

Excerpts :

Matrimonial Asset
EPF contribution.

In any divorce petition, if the husband has EPF contribution, the court can order to pay the wife certain percentage of the accumulated amount.

S 53A of the EPF Act1991 provides that upon producing the court order, the accumulated amount from the date of marriage until the date of the decree nisi is to be taken as matrimonial asset and the wife gets certain percentage from the said amount.

This amount shall be transferred to the wife's account. If the wife is not a contributor, then, a new account shall be opened and the portion is transferred into the new account.

Prior to this, the wife can only get the portion after the contributor attains the age 55. Anything can happen during this period.

To overcome this problem Parliament came up with S53A that allows the wife to get the sum upon producing the court order.

S53B  does not allow the amount to be taken out or transferred until
1. She is dead, or
2. She is 55 years old, or
3. She is mentally or physically affected, or
4. The beneficiary is a foreigner who wants to leave Malaysia