Ensure Your Loved Ones’ Future: Learn How to Add a Nominee to Your EPF Account

Introduction:

When it comes to financial planning, one important aspect that often gets overlooked is the nomination process. Although it involves some morbid thoughts of one's own mortality, it's necessary to carry out to ensure that financial benefits are transferred seamlessly to their loved ones in case of unfortunate events. In this article, we will be discussing the nomination process for adding a nominee to your Employee Provident Fund (EPF) account.

Nomination process for EPF Account:

The Employees' Provident Fund (EPF) is a retirement savings scheme that allows employees to accumulate funds for their retirement. As per the EPF rules, any member with a family can assign one or more members of the family as nominees. Meanwhile, a member who has no family can nominate any other individual. If the member then acquires a family, the previous nomination will become invalid.

Defining family for EPF nomination:

The rules for EPF nomination vary based on whether the member is a male or female. In the case of a male EPF member, his family includes his wife, children, dependent parents, the widow of a son, and children. Meanwhile, a female EPF member's family includes her husband, children, dependent parents, dependent parents of the husband, the widow of a son, and children.

Step-by-step guide for e-nomination process:

• Adding a nominee to your EPF account has been made easier with the introduction of the e-nomination process. Here are the steps you need to follow:
• Step 1: Visit the EPFO website using the link provided.
• Step 2: Hover over the “Services” section and click on the “For Employees” tab.
• Step 3: Click on the “Member UAN/Online Service” option.
• Step 4: Login using your UAN and password.
• Step 5: Under the “Manage” tab, select the “E-Nomination” option.

Step 6: A new tab called “Provide Details” will appear on the screen. Enter your details and click on the “Save” option.

Step 7: Update the family declaration by clicking on “Yes” or “No” depending on whether you have a family or not.

Step 8: Add your nominee(s).

Step 9: Declare the share for each nominee in percentage by clicking on the “Nomination Details” option. The total percentage should equal 100%.

Step 10: Click on “Save EPF Nomination” to save the share details.

Step 11: To complete the e-nomination process, click on the “E-sign” option to generate an OTP. Submit the OTP received on the mobile number linked with your Aadhaar card.

Benefits received by nominees:

Your EPF account contribution consists of your and your employer's share. You earn interest on this balance as per the rates fixed by the government of India. A part of these contributions also goes to the Employees’ Pension Scheme (EPS) which provides pension income once you attain the age of 58 years. The Employees’ Deposit Linked Insurance (EDLI) is also linked to your EPF account and provides life insurance coverage of up to 35 times your average monthly salary, subject to a cap of Rs 15,000 and a limit of Rs 7 lakh. In the case of your demise, your family will receive the capital along with the accumulated interest on these contributions and can claim the insurance benefits if you add them as nominees to your EPF account.

FAQs related to EPF nomination:

1. Is it mandatory to add a nominee to your EPF account?

Yes, e-nomination has been made a mandatory process for all EPF members.

2. Who approves the EPF e-nomination process?

No approval is required for the e-nomination process; therefore, you do not need to wait for your employer's approval for the same.

3. How to update your EPF nomination online?

Follow these steps to update your nomination online:

• - Visit the EPFO Member e-Sewa Portal using the link provided.
• - Login using your UAN, password, and sign in after completing your captcha.
• - Select the “E-nomination” option under the “Manage” tab and enter the new nomination.
• - Select “Yes” under the “Family Declaration” section to add a new nominee or update the details of the previously listed nominee.
• Provide the Aadhaar number, name, gender, date of birth, relation, bank account details, and guardian (if the nominee is a minor), and upload the nominee's photo.
• - You can add more nominees if required.
• - Enter the total amount of shares for the added nominees and click on the “Save EPF Nomination” button.
• - Click on the “e-Sign” option and proceed by submitting the OTP received on your registered mobile number.

4. How to check the nominee status of your EPF account?

Login to the Unified Portal and click on the 'Manage' tab. Under e-Nomination, you can check the status of your nomination.

Additional Resources for retirement planning:

Proper retirement planning requires not only investments but also adequate management of investments made. Links to relevant articles on provident fund, pension schemes, and NPS investment can be found in our blog section.

Conclusion:

Regularly updating your nomination details is essential to ensure that your loved ones receive the financial benefits with ease. The e-nomination process for EPF account ensures that you can quickly and conveniently add or modify nominee details without any intervention of your employer. Moreover, understanding the benefits your loved ones will receive can help you make informed financial decisions.