Understanding EPF and EPS Nominations: A Guide for Family Members
What is an EPF Nomination?
EPF (Employees’ Provident Fund) and EPS (Employees’ Pension Scheme) are crucial retirement savings plans in India. When you join these schemes, you can choose who will receive your benefits upon your death. This decision is known as a nomination.
Key Points to Remember:
- Equal Distribution in No-Nomination Cases: If no one is nominated, the PF amount is equally distributed among all surviving family members, except for sons who have attained majority, sons of a deceased son who have attained majority, married daughters with a living husband, and married daughters of a deceased son whose husband is alive.
- Pension Eligibility: Only the spouse and children are eligible for pension benefits. Siblings are not considered family members.
- Nomination Rules: EPF and EPS nominations are filed together but apply differently. EPF nominations cover dependents, while EPS nominations cover the spouse and children.
- Marriage and Nominations: Marriage automatically nullifies any existing EPF and EPS nominations. If you get married, you must file a fresh nomination updating your family details.
- E-Nomination: Use the EPFO’s e-nomination facility to add family members and upload their Aadhaar numbers. This allows family members to file online claims after the member’s death.
Filing a Death Claim
Filing a death claim with the EPFO is rarely straightforward, especially when the deceased has worked across multiple organisations. Here’s what you need to do:
- Consolidate Accounts: Before a nominee can access the provident fund, pension, or EDLI benefits, all previous PF accounts and EPS service periods must be consolidated. This involves filling out Form 13 to transfer past PF balances, along with Forms 20, 10(D), and 5IF.
- Special Requests: If a service period is tied to a different UAN, the nominee may be willing to forgo it, but the field office may insist on transferring it, delaying the claim.
- Exempt Trusts: Exempt trusts can speed up withdrawals, but pension issues may still arise.
Real-Life Example
Take the case of a man who died in his thirties without naming a nominee. His employer, M. Anuradha, helped his family access his benefits. The PF withdrawal was processed, but the pension claim hit a roadblock because the employee had worked at three organisations, and one employer failed to deposit EPS contributions despite his eligibility.
Conclusion
File your nominations seriously and consolidate old accounts to avoid complications. Don’t leave your family guessing about who will receive your retirement benefits.
Reference : https://www.livemint.com/money/know-all-about-death-claims-in-epf-eps-edli-employees-provident-fund-employees-pension-scheme-epfo-11746087051939.html
