EPF is a good investment scheme for retirement. The EPFO has made it mandatory for account holders to designate nominees, but there is no deadline for the process.
Managed by the Employee Provident Fund Organisation (EPFO) and supervised by the central government, the Employees’ Provident Fund (EPF) is a secure investment scheme if you want to save for retirement. Through this plan, an employee makes a regular contribution of 12 per cent to their EPF account. The employer also makes the same amount of contribution. The accumulated corpus, which also includes the collected interest, can be withdrawn by the investor upon their retirement.
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The current interest rate on EPF deposits for FY 2022-23 is 8.15 per cent. While the scheme helps to extend financial support to the investor after their retirement, it also helps their family in case of the account holder’s unfortunate death. In order for an individual to aid their family in receiving the EPF corpus, the account holder needs to designate their family members as nominees.
Is EPFO nomination mandatory?
Earlier this year, the EPFO made nominating beneficiaries compulsory for account holders. There is no deadline for the process. The organisation also launched an e-enrolment initiative that helps to make the process of adding nominees more convenient for members.
EPFO nominees are eligible to get a share of Provident Fund accumulations, Employees’ Deposit-Linked Insurance (EDLI), and pension payments for the Employees’ Provident Fund (EPF).
Read More: EPFO: What happens to your Provident Fund if you retire early?
How to add nominees to an EPF account?
One can add nominees to their EPF account through e-nomination. As per the EPFO regulations, only Aadhaar-validated UAN holders can submit an electronic nomination. Here is the step-by-step process for e-nomination.
1. Go to the official website epfindia.gov.in and login to your EPF account with UAN and password.
2. Click on the ‘Manage’ section and click on ‘E-nomination’.
3. Tick ‘Yes’ against the ‘Having Family’ option and add the details of your family members such as Aadhaar, name, date of birth, gender, relation, and bank details.
4. You can also include other members by clicking on the ‘Add Family Details’ option.
5. Next, select the ‘Save EPF Nomination’ and e-sign your application. The request will be submitted accordingly.
What happens if there is no EPF nominee?
Account holders can nominate one or more of their family members as EPFO nominees. In case, they don’t have any family members, they can also nominate any other person, but the nomination will become invalid in case of the member acquiring a family.
In cases where there are no nominees, then the money can be withdrawn by an immediate family member or legal heir.
