The Employees Provident Fund (EPF) today claimed that the RM2,000 cap put on the death and incapacitation benefits will be to the advantage of the majority of members who are not claimants. "The rationale of capping the quantum payment to RM2,000 is that the payment is done through EPF's gross income. This means that other EPF members that are not involved are forced to take on the burden together," said EPF public relations manager Nik Affendi Jaafar in a statement to malaysiakini today. "The aggregate of benefit payments that burdens a member every year for death and incapacitation benefits has been rising tremendously from year to year. "The implication is that EPF income and profits that are supposed to be given in the form of dividends to members will be lessened in being used for extra payments (death and incapacitation benefits)," he explained. Nik Affendi was reacting to protests against the amendment to Section 58(1) and (2) of the EPF Act, 1988, which provides for reducing the (additional) amount of quantum paid upon death, mental and physical incapacitation from a maximum payment of RM30,000 to a fixed amount of RM2,000. The EFP official also reiterated that Deputy Finance Minister Chan Kong Choy, when tabling the proposed bill, had informed the Senate that the amendment was to avoid unnecessarily burdening other EPF members. EPF records also showed that the maximum RM30,000 payment could only be enjoyed by those with higher savings and that "they did not need the benefits". Also, the majority of members in lower income brackets do not get this maximum amount anyway, he added. "Besides, the death and incapacitation benefits are also provided by the Social Security Organisation (Socso), which a large portion of EPF members belong to as well," Nik Affendi reported. 'Accusations not true' Meanwhile, Nik Affendi also stated that the amendment to the Act had been given publicity by local media since May 17. Twelve MTUC affliates had reported last Friday they were "shocked' that they or their representatives on the EPF board were not aware of the amendment ([#1]Unions outraged by amendment to EPF Act[/#], Oct 13). Nik Affendi stated that it was EPF's practice to bring its policies and policy changes to the EPF board and sometimes the Finance Ministry before approval. "At the board level, the policy suggestions need the unanimous approval of all members before it is taken to the highest authorities. Therefore without approval, especially from worker representatives, the policy suggestions would never be approved.," said Nik Affendi. The amendment was discussed and approved by the EPF board in the presence of union representatives board in June 1999, passed by Parliament in May this year and enforced in July. "Therefore the accusation of MTUC affiliates that the amendment was not known by union representatives or tabled in the board meetings is not true," Nik Affendi added.