Top EPFO Alert:

 Top EPFO Alert: Add nominee's name to your PF account today to avoid loss of Rs 7 lakh

The Central Organization of Employees' Provident Fund has issued an EPFO alert to all the subscribers who have not added their nominee's name to their PF account yet as they will lose up to Rs 7 lakh in the future if they don't do so now. Read on to know more about this EPFO alert and add your nominee’s name to your PF account today or else... You may also like:- Why Add Nominee’s Name To Your PF Account? What Is The Need Of Nominee In EPF? How To Add Nominee's Name In EPF?

Why do you need an alternate nominee

An Alternate Nominee (AN) is a person who has been added to your Employee Provident Fund Account (EPF Account) so that in case you die, or become disabled and incapable of handling your own financial affairs, an alternate decision maker is available on your behalf. The nominated person can be any one of these following persons: spouse, parents, siblings and legal heir(s). However, if someone other than a legal heir is nominated as AN then they should also be below 60 years in age. When nominating the alternate nomination, it is important to note that only one individual can be nominated for this position and the nomination cannot be changed later. It is not possible to nominate more than one person at a time. So before adding the name of an alternate nomination, you must make sure that there are no others left out who may need to act on your behalf in case something happens to you. If any existing nominees are aged 60+, then he/she will automatically become the new AN by default if nothing is done about their title after their birthday. Hence, it is very crucial to update their title before the birthday arrives. In order to avoid missing deadlines or forgetting to change the AN status, use the Pensioner Portal which allows one-time update of details related to beneficiary nomination without having to submit Form 10B every year. Alternatively, one can also email Member Section with details of nominee along with self-attested copies of documents like PAN card and Aadhaar card. Once this information is verified by HR Department, a letter mentioning all changes will be sent back confirming eligibility. On receipt of the confirmation letter, please register all required changes on PF website and notify HR Department. A nominal fee of Rs. 20 will be charged for each change notified through email or post office. Remember! Adding your spouse as nominee too is compulsory as per government norms. Till date, 1 million people have updated their nomination via Pensioner Portal, save yourself from undue hassle by doing it now! You don't want to find out that you could have saved a few lakhs in just minutes when it's too late!

Steps to add an alternate nominee

To add an alternate nominee to your provident fund (PF) account, visit EPS website and login with employee ID and password. After that, on left-hand side option click on 'Privacy Settings' under which there is an option for ‘Add Nominee’. Click on that button and fill up a form given on screen. On filling all details like; Name, Relationship with Employee, Date of Birth and e-mail address make sure you enter your own mobile number as you will get a code via SMS which you have to punch in order to confirm adding nominee's name in your PF number for getting his share from 1 July 2016 onwards. Once the changes are saved, please ensure that you send the required documents through email. 

In case if employees has more than one pension accounts then also nominate someone as per their request by giving them access to their savings account and giving it a nominal amount so they can withdraw money whenever they want 

Take these steps before 31 December 2015 or else your PF account may lose around Rs 7 lakh 

Now tell me friends! Who doesn't need a good return? Be wise and make these few easy steps happen before it's too latel

What happens if no alternative nominee is added?

The members can add their nominees in lieu of themselves after intimation to EPFO. If no such intimation is given, then on death of a member, his/her nominee will not be able to claim death-cum-retirement gratuity and also life cover benefits by virtue of being nominated. This implies that on death of a member, his/her nominee gets nothing while it is only payable if he or she is nominated before his/her death. If a person dies without nomination, then all other members' contributions are paid back along with interest at 4% per annum (compounded annually) for 31 years from 1st April following the year in which it falls due for payment till it reaches its original corpus (i.e. full amount of contributions). In case there is no nomination, the nominee cannot get any benefit from the money as it will be distributed among remaining contributors according to law. 

The notification states that one has to nominate an alternative beneficiary or a successor nominee before 31 March 2019. Failure to do so will result in this consequence - On death of a member, his/her nominee will not be able to claim death-cum-retirement gratuity and also life cover benefits by virtue of being nominated. As such, the default beneficiaries under Section 32A of Employees Provident Fund Act 1952 would be legal heirs who have been specified in Section 27A. Hence, even though no nomination was made, the nominee will still receive death-cum-retirement gratuity and life cover benefits. However, legally, only those successors mentioned in Section 27A shall be entitled to receive these gratuities.

How can I nominate my spouse?

To nominate a member, you will have to deposit an amount equal to 8% of his/her basic pay and dearness allowance (as per 6th CPC) in the fund. Also, that nominee should not be drawing any pension or benefit from Central or State Government at present and should not be a non-resident Indian. You can check if your spouse is eligible here. The nomination form is available online and also at all EPF offices. A request for withdrawal of the nomination amount has to be made within one year from the date of commencement of membership in case a person does not want his/her nominee any more. If this time limit is not followed, the nominee becomes irrevocable. All withdrawals are subject to due process as well as applicable laws.

How do I add an alternate nominee online?

Once you have added an alternate nominee, no employer will be able to make contributions on your behalf. If you have not added an alternate nominee and stop contributing, you will lose control over your account. It is a good idea to add one while contributing. You can add nominees by following these steps online. Log in to the Employee’s Personal Web Portal (www.epfindia.gov.in) Click on My Account > Third Party Nominee > Third Party Nominee’s Registration > Next > Select from the drop-down list ‘Self’ as the person adding the nominee> Give it a name> Save changes.

Do I have to pay any fee while nominating a Nominee?

No, there is no fee for nominating a Nominee. Just visit any online or offline UAN customer service center and give details. It is completely free! You can make nomination even if you are not enrolled yourself. If someone else is enrolling on your behalf, then the person should bring a valid proof of identity along with the date of birth certificate for both the nominee and the sponsor (i.e., sponsor’s own self).

Can anyone other than me act as Nominee?

Nominations can be made only by contributing members and only one nomination is permitted. However, if a member dies and is survived by a widow(er) with no children, then she/he may continue to act as nominee on behalf of the deceased member. When a contributing member is added as a nominee, his/her spouse will not be able to act as nominee. Therefore, it would be in your interest to have another person other than yourself as nominee so that even if you are incapacitated or die while continuing as contributing member or when you switch over from being contributor to pensioner, there will be someone else who could carry forward your contribution record and pensionary benefits. There are three ways of nominating a person as nominee - 

1. Fill up Form-D-Nomination form available at any employer’s office or EPFO’s website 

2. Request employer to nominate him/her as per Form D-Nomination 

3. Nominate somebody through Form H-Nomination after taking permission from Member - Designated OfficerOfficer (MDO). You need to fill out the FORM H-Nomination and give the required details of all individuals such as Name, Father’s Name, Gender etc. You also need to provide reasons for why this individual should be appointed as nominee. Once submitted, MDO will check eligibility criteria (in case you nominated a family member) and he may take some time before approving or rejecting your request based on documents submitted by you. Remember that once approved, MDO cannot change decision without giving valid reasons for doing so!