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DERIVATIVE BENEFIT

 

INTRODUCTION

Derivative Benefit is a retirement benefits given to the dependents if pensioners or the civil servants died. Derivative benefits are provisioned in all Malaysian pension laws.

 

PROVISIONED OF LAW

Type of benefits provided in the law is

Type Of Benefits

Law

  • Derivative Gratuity

A granted benefit paid once to the dependent of an officer who died in service /

·         Section 14 Pension Act 1980 (Act 227); and

·         Section 15 Pension Act Statutory And Local Authorities Pensions Act 1980(Act 239)

  • Derivative Pension

Monthly pension caused by the death of officer / pensioner, paid to the officer’s dependent / pensioner as provided by respected pension laws.

 

  • Section 14 & 15 Pension Act 1980 (Act 227) and
  • Section 15 & 16 Pension Act Statutory And Local Authorities Pensions Act 1980(Act 239)
  • Cash of Lieu

Benefits given for annual leave that can not be spent because of service interest up to a maximum of 150 days to pensionable officer

 

  • Regulation 21, Pensions Regulations 1980
  • Dependent Pension

An addition grant to derivative pension

  • Section 18 Pension Act 1980 (Act 227) and
  • Section 20 Pension Act Statutory And Local Authorities Pensions Act 1980(Act 239)

  

WHO IS ELIGIBLE TO?

Type of Derivative Benefit

Eligible Dependents

Derivative Gratuity

 

  1. Widow or widower
  1. Children under 21 years old and unmarried; and
  2. Mother

Derivative Pension

 

1.     Widow or widower

2.     Children under 21 years old and unmarried

Cash of Lieu

 

  1. Widow or widower
  2. Children under 21 years old and unmarried; and
  3. Mother

Dependent Pension

 

  1. Widow or widower
  2. Children under 21 years old and unmarried; and
  3. Mother

  

INTERPRETATION OF DEPENDENTS

 Widow / widower

 

  • By regulation number 2, Pension Regulations 1980, widow or widower means wife or husband that is still alive to an officer who died which marriage is recognized in Malaysia as a marriage valid under any written law, religion, tradition or convention.
  • For the non-Muslim, Law Reform Act (Marriage and Divorce 1976), requires the marriage after 1.3.1982 registered in the Marriage and Divorce Division National Registration Department.

 

Child 

Child means a child of a deceased officer or pensioner and under twenty-one years old and unmarried, that is;

 ·         Own flesh and blood

·         A posthumous child

·         A dependent step child

·         An illegitimate child

·         Adopted – a child adopted by the officer under any written law relating to adoption  or under any custom or usage on satisfactory proof of such adoption

·         Disable child – who is a child of any age and is mentally retarded or physically and permanently incapacitated and is incapable of supporting himself provided that such child is mentally retarded or physically and permanently incapacitated before the child reaches the age of twenty-one years;

 

HOW TO APPLY?

 If death in service occurs among the officers widow / widower / heir shall take the following actions:  

  • Report immediately to the Head of Department in which members served, and
  • Submit copies of the following documents:
    • A copy of death certificate;
    • A copy of marriage / registration certificate. If none, a valid declaration letter of Widows / Widower are acceptable;
    • A copy of birth certificate / NRIC of  children under 21 years old;
    • A copy of child adoption and authentication document (if applicable);
    • Disable child documents from Government Medical Consultant [JPA.BP.UMUM.B04 Forms]; and Social Welfare Department Reports with a full photo of disabled child; (if applicable)
    • A photo of widow / widower
    • A Letter of Guardian Confirmation [JPA.BP.SPT.B02 Forms] (if there are children under the age that is not in the guard by the widow / widower)

     

Action by Head of Department

 

Forms must be completed and documents submitted by the Head of Department

·         Derivative and or Gratuity Application form [JPA.BP.SPT.B01a] (if applicable);

·         Debt / No Debt Declaration Form [JPA.BP.UMUM.B01];

·         A passport size photo, signature and both recipient’s thumbprint (left and right).

·         Information about the address, method of payment, children under 21 years of age, declaration with signature and thumbprint of the applicant;

·         Information about option under Regulation number 10, Pensions Regulations 1980;

·         A copy of updated service and leave book;

·         Income tax settlement letter;

·         Police report and or Inquest results by the court for cases of fatal accidents;

·         Mother’s / father’s (if mother pass away) Socio-Economics Report by Welfare Department;

·         KWSP 1036 Statement

 

Summary

§         Derivative Benefit upon Death of Officers in service

§         Derivative Benefit’s Forms and Document

§         Dependent Pension rates if disaster, accident or disease occurring outside the Security Area

§         Dependent Pension rates if disaster, accident or disease occurring inside the Security Area

§         Dependent pension Forms and Document