As an EPF account holder, it is important to draft someone in your account as a nominee so that in the event of your demise the nominee can easily claim the invested funds. Assigning a nominee ensures the safety of your PF investments.
The EPFO launched an e-nomination facility in 2019, which can be availed from the EPF member sewa portal. This has made the nomination procedure easier and faster.
The nomination rules for EPF and EPS are quite different. As per the EPF Act, only the defined family members can be nominated on your behalf. Here the ‘family member’ can be:
- For male members – wife, children, dependant parents, deceased son’s wife or children
- For female members – husband, children, dependent parents (her’s or her husband’s), deceased son’s widow and children.
In the case of EPS, only the spouse and child can be nominated for the benefits. However, if an EPF account holder dies without a nominee, it is quite difficult to claim the benefits or invested amount.
Conditions to be Satisfied to Add the EPF Nominee Online
Earlier, the nomination details were provided to the employee or the member on the time of account creation. With the introduction of e-nomination, this procedure has become more convenient and seamless. As per the circular released by EPFO regarding the nomination, here are some of the conditions to be satisfied in order to update the nominee details online.
- The EPF member must have a valid Aadhaar card and number
- The Aadhaar data should be linked to the EPF account
- The linked Aadhar must be verified on the EPF member portal
Now, the EPF nomination details can be added and updated completely online. Earlier, the nominee updating procedure was an offline process and it had to be done while changing or joining a job. In case of making any changes later, the member had to apply for the update using a physical form. The online process is much more hassle-free and accurate. The nominee name, as well as the claim percentage, can be added via the online procedure.
EPF Nomination Rules
Using the online nomination facility, the member can change the nominee details as per his/her wish, any number of times. Here we are listing some other rules regarding the nomination for EPF.
- There should be at least one nominee for every EPF account created
- There can be more than one nominee too but, the member should fix the claim percentage for each nominee.
- A non-family nominee will be considered as invalid addition.
- If a member has made the nomination before marriage, it will be considered invalid post marriage.
- If the member doesn’t have a family at the time of the joining or nomination, anybody can be added as the nominee.
- In case a minor is nominated, the guardian should be the family member of the nominee.
- In the case of the member’s death, the maturity amount will be paid to nominees as per the proportion assigned by the EPF member.
- If there is no nomination made by the member, the fund would be distributed among his/her family members. Married daughters and sons are not considered for this case.
How to Update EPF Nominee Details Online?
Follow these steps to update or add nominee details to your EPF account.
- Visit EPFO official website
- Login to your account using your UAN and password
- Click on the ‘Manage’ tab and select ‘E-nomination’
- Fill in the details of the nominees
- Additional information like Bank account number, IFSC code, and Aadhaar number, will be asked. Fill in the correct details.
- Add the photograph of the nominee, your relation with the nominee, and the share percentage.
- Save the details entered
- Submit the form
EPF is one of the most reliable and secure retirement savings schemes. It provides tax savings and a good retirement corpus. It also provides debt allocation which makes it more dependable. If the EPF member dies without allocating a nominee, the withdrawal procedure might become difficult for the family members.
E-nomination facility has made the nomination procedure simpler and hassle-free. If a nominee is added on the EPFO portal, fund processing, and verification will become easier for the authorities. If you have an EPF account, and still haven’t added a nominee, this is the right time to do so.
Follow the protocols provided by the EPFO and add a nominee via the online procedure to ensure the safe processing of your corpus. Make sure you activate your UAN and add KYC to the EPF portal for hasslefree processing and withdrawal. If you have any doubts regarding the nominee addition, feel free to give us a shout in the comment section below.
Our experts will be happy to assist you. With the current pandemic crisis, and climate change issues happening around, always stay safe and make sure you make wise decisions regarding your savings and retirement plans.
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