Pension Derivatives
Derivative Benefits
The following is a list of derivative benefits that eligible beneficiaries are entitled to according to the Pension Act:
- Derivative Gratuity:
Gratuity is a lump sum payment paid to eligible beneficiaries.
- Derivative Payment in Lieu of Leave:
A cash payment (lump sum) in lieu of unutilised leave during service will be paid to eligible beneficiaries.
Cash payment (lump sum) in lieu of unutilised leave during service will be paid to eligible beneficiaries:
- Derivative Pension:
A monthly pension derived due to the death of a civil servant / civil pensioner that is paid to eligible beneficiaries, as stated in the relevant Pension Act.
*Eligible beneficiaries – dependants of deceased civil servants / pensioners who died in service or legitimate next of kin.
ELIGIBLE BENEFICIARIES WHO CAN RECEIVE DERIVATIVE PENSION
Below are the eligible beneficiaries who can receive a derivative pension:
- Widow or Widower
- Children:
- Until the age of 21 or married (whichever comes first).
- The continuation of derivative pension to the children may be reviewed if the child pursues education at a tertiary institution up to a bachelor’s degree, pending evaluation by JPA.
- The exception of the age requirement of 21 years and being married does not apply to disabled children. Disabled children who are unable to support themselves are eligible to receive a lifetime derivative pension (subject to the qualification assessment by JPA).
BREAKDOWN / DISTRIBUTION OF DERIVATIVE PENSION
For the derivative gratuity and derivative payment in lieu of leave, the following are the fractions of share distribution:
- Widow/ Widower and Child – 9/10
- Mother or Father – 1/10.
* In the absence of the above recipients, the derivative gratuity and cash awards as a substitute in lieu of leave may be given to legitimate next of kin.
The derivative pension payment is apportioned as follows:
- Widow / Widower (two (2) shares to each widow / widower)
- Children (one (1) share to each child).
THE APPLICATION PROCESS FOR DERIVATIVE BENEFITS
In the case of death in service, the application for derivative benefit is managed by the last official department of the officer. The Human Resources Department of the late officer must provide the necessary documents to KWAP to process the derivative benefits.
An application for derivative benefit can be made by the beneficiaries of pensioners by completing the application form JPA.BP.SPT.B01d. (download here).
ELIGIBILITY TO RECEIVE DERIVATIVE PENSION FOR MARRIAGE IN SERVICE AND RETIREMENT
Eligibility to receive derivative pension:
- For couples who gets married while in service, the widow/ widower is entitled to get a lifelong derivative pension.
- For a marriage that occurs after the retirement of the employee, the eligible widow / widower is entitled to receive a derivative pension that is limited to 20 years from the date of retirement of the officer.
CHILDREN OF THE DECEASED WHO ARE IN HIGHER LEARNING INSTITUTIONS
The issuance of derivative pension to a child will cease once the child reaches the age of 21 years. However, an extension of the derivative pension payment may be considered if the said child continues education at a higher learning institution until the attainment of a bachelor’s degree.
Application for derivative pension for children in IPTs can be submitted using Form JPA.BP.SPT.B03 (download here)
REPORTING THE DEATH OF A PENSIONER / DERIVATIVE PENSION RECIPIENT
Next of kin can report the death of a pensioner by contacting the KWAP Customer Service Unit at 03-88878777. The heirs may also present themselves at the KWAP Pension Services Division counter to report the mortality. Please provide a copy of the death certificate when the report is made.
APPLICATION FOR FUNERAL ARRANGEMENT ASSISTANCE
Funeral arrangement assistance is given to the heirs of Malaysian Government retirees who passed away on and after 15 October 2010, including retirees who opt for the EPF scheme (prior to this date, no refund was given if the pensioner died). Applications can be made using form JPA.BP.UMUM.BMJ (download here).
Please be informed that the BMJ payments will be made on the death of the pensioner only and will not be made when a derivative pension recipient dies.
APPLICATION FOR PENSION BALANCE
Upon the death of the pensioner or pension recipient, the beneficiaries may claim any outstanding payment yet to be paid to the deceased (if any) by submitting the Pension Balance Application form (JPA.BP.UMUM.BK Pin 2024) which can be downloaded from www.jpapencen.gov.my.
If the application is submitted by someone other than the legal beneficiaries (other than the widow/widower, children, or parents), the applicant must provide additional supporting documents, namely a Grant of Probate or Letter of Administration issued by the District Land Administrator, Court, or a legally appointed Estate Trustee.
