Employees Provident Fund (EPF) account holders should add a nominee by December 31, as new rules will take effect next month. If this is not done, the employees will lose on several benefits, including the loss of insurance money and pension.
Only, nominated members can withdraw the EPF savings in the event of subscribers' sudden demise. Subscribers can nominate more than one nominee and also fix the percentage of sharing among all such nominees.
EPF account holders can add the nominee online and to avail it, subscribers must have an active Universal Account Number (UAN) and Aadhaar details should have been seeded to subscribers' EPF account.
Here are the steps to submit EPF account's nomination details online:
Visit the EPFO website and go to 'Services'
Step 2: Now, go to employees and click on 'Member UAN/online service'
Step 3: Login with Universal Account Number (UAN) and password
Step 4: Under 'Manage tab', select e-nomination
Step 5: Click 'yes' to update the family declaration
Step 6: Click 'Add family details'(More than one nominee can be added)
Step 7: Click on 'nomination Details' to declare the total amount of share. Click 'save EPF nomination'
Step 8: Click 'e-sign' to generate OTP and submit OTP sent on mobile number linked with Aadhaar. With this, e-nomination is done. There is no need to send any physical document to the employer.
In May this year, EPFO hiked the maximum sum assured payable under the Employees’ Deposit Linked Insurance (EDLI) scheme to Rs 7 lakh.
EDLI is one of the schemes formulated under the Employees’ Provident Fund and Miscellaneous Provisions Act (EPF and MP Act), 1952. Under this, the registered nominee receives a lumpsum payment in the event of the death of the person insured, during the period of the service.
The benefits under EDLI can be claimed by the nominee specified by the insured person. The claim amount depends on the salary drawn in the last 12 months of the employment of the deceased (this is subject to a maximum of Rs 7 lakh).
The minimum death cover, in this case, is Rs 2.5 lakh.
First Published: IST