Does your money go into your nominee’s CPF account after your death unless you opt out?

A member of the public wrote to TOC asking,

“Hi I recently heard from somebody, that if I die, my nominee will no longer collect my CPF in cash, instead all my CPF will go into my nominee’s CPF account unless I go down to CPF to sign an opt out form. Is this true? would you like to research on the issue? I also hear that this rule was in place in 2014, that unless you opt out, all your CPF will go to your nominee’s CPF account & your nominee can’t cash out”

In response to the question, Leong Sze Hian wrote:

This is incorrect. Unless you sign an “enhanced CPF nomination form” to pay your CPF on death to your nominee(s)’ CPF, the normal nomination form will pay in cash to your nominee(s). You can specify the proportion to be distributed to the Ordinary, Special and Medisave Accounts of your nominee(s) in the case of the “enhanced nomination form*.