Provident Fund (PF) is not just a financial support for EPFO subscribers, but it also comes to the rescue of their families as well, in case the account holder dies during service period. However, families can get the benefit if EPF subscribers file the nomination papers as per the Employees’ Provident Fund Organisation (EPFO) rules. A single mistake may lead to unnecessary delays and even loss of all the EPFO benefits for the family. Here we explain one rule that is very critical for all.
Speaking on the EPF and EPS rules, Pankaj Mathpal, Founder and Managing Director at Optima Money Managers said, “As per the Employees Provident Fund (EPF) Scheme 1952, the nomination of the EPF and EPS account becomes invalid once the EPF-EPS account holder gets married. So, once the EPF-EPS account holder gets married, he or she should renominate his or her nominee in EPF-EPS account.” Mathpal said that in the case of a male, it is mandatory that the noiminee will be his wife while in the case o female, it will be the husband who will be the nominee. He said that if EPF-EPS account holders fail to nominate anyone after marriage, and subsequently dies during the service period, then due to the lack of nominee, the wife or other rightful heirs won’t get the EPF claim automatically.
On how to claim the EPF and EPS in case the account holder has died during service period, Singhal, a SEBI registered tax and investment expert said, “In case, there is no nominee mentioned in an EPF or EPS account, if the EPF account holder who has died has left his will, then this can be used to prove who the immediate heir is.” The Good Money Online founder went on to add that if the will is not there, then the immediate heir means wife or husband of the EPF-EPS account holder will have to submit succession certificate from the court to prove his or her claim on the EPF-EPS account left after the death of account holder.”
An EPF-EPS account holder can nominate any of the members falling in the purview of family stated by the EPF-EPS rules in case of death or divorce with the life partner. But, not before that. EPF-EPS rules are quite clear on this part of nomination.