The Employees’ Provident Fund Organisation is a central organization that manages retirement money for the nation’s workforce. The EPFO offers 3 major schemes : Workers’ Pension Fund (EPF) Employees’ Pension Scheme (EPS) Employees’ Deposit Linked Insurance (EDLI) Scheme. Such schemes offer savings, pension and insurance cover to employees in the private sector to create a sufficient retirement corpus. In this blog, we shall talk about the significance, benefits and steps associated with completing EPFO e-nomination online.
EPF, EPS & EDLI – Understanding EPF
Prior to proceeding with the e-nomination procedure, let us learn the 3 schemes offered by EPFO:
1. Employees’ Provident Fund:
It is a savings scheme where the worker and also the employer contribute a portion of the employee’s wage each month. The contributions grow annually at a fixed interest rate and leave a substantial corpus upon retirement or withdrawal.
2. Employees’ Pension Scheme:
This scheme provides a pension to workers upon retirement. An employer contribution of part of the worker’s salary towards EPS guarantees a regular income after retirement.
3. Employees’ Deposit Linked Insurance:
This particular insurance scheme covers the worker’s family if the employee dies during the service time. The benefit under EDLI is capped at Rs 7,00,000.
Benefits associated with E-Nomination
The e-nomination procedure eliminates paperwork and enables access to money for the family quickly. The benefits of e-Nomination are:
- Immediate Access: When the fellow member dies, the nominees can use the money instantly without going through lengthy legal procedures.
- Multiple Nominees: Members may nominate more than a single individual and indicate what percentage of the entire corpus each candidate will get.
- Flexibility: Members may update or even alter their nominees anytime via the EPFO portal.
- Legal Validity: E-nominations are recognized legally so the proper claimants receive the benefits without dispute.
Guide to EPFO E-Nomination Process
The filing of an e-nomination is simple. Here is a guide to complete online e-nomination:
Step 1: Login to EPF Member Portal
- Go to the EPFO Member Portal.
- Sign in using your password and UAN. The UAN is EPFO’s 12 digit number which identifies an EPF member.
Step 2: Pick E-Nomination
- After logging in, click the ‘Manage’ tab.
- Click the ‘E-Nomination’ button.
Step 3: Enter New Nomination
- Click the ‘Enter New Nomination’ button.
- A ‘Provide Details’ tab will open. Click the ‘Proceed’ button.
Step 4: Update Family Declaration
- Select ‘Yes’ to update the family declaration.
- Select ‘Add Family Details’. In case you have more than a single nominee, select ‘Add now’ to add more nominees.
- You are going to need to input the nominee’s Aadhaar number, name, gender, birth date, relation, address, account details (optional), guardian details (if the nominee is a minor) and photograph (not bigger than 100KB).
Step 5: Save Family Details
- Declare the amount of shares in total. Be sure the total percentage of shares for all nominees equals 100%.
- Choose ‘Save Family Details’.
Step 6: Save EPF Nomination
- Back to the ‘E-Nomination’ option under the ‘Manage’ tab.
- It’ll show ‘Pending Nomination’. Click ‘E-Sign’ to create an OTP.
Step 7: Generate OTP & Submit
- Put in Aadhaar virtual ID.
- You’ll be asked to type in your Aadhaar or Virtual ID again and consent to get e-KYC services information from Aadhaar.
- Click ‘Get OTP’. An OTP is going to be emailed to your registered cellphone number.
- Enter the OTP which arrived at your registered mobile number.
- Select the check box to consent and click’ Submit’.
EPF Scheme Nomination Rules
Nomination rules under EPF and EPS are essential to understand:
For EPF:
- For male employees a family comprises the wife and children (married or unmarried) dependent parents and also the widow of a boy and his children.
- For female employees, a family comprises the husband & kids (married or unmarried) dependent parents, spouse’s dependent parents and also the widow of a boy and his kids.
For EPS:
A family is defined as the employee’s partner, a little daughter or son, and also an adopted son or daughter adopted prior to the worker’s death.
New Developments in EPF
EPFO requires e-nomination for all its EPFO members. No deadline was established but members are urged to file nominations as early on as they can. This particular move is designed to simplify the claim of benefits and ensure the proper beneficiaries receive the accumulated funds without delay.
Conclusion
All EPF members should complete the EPFO e-nomination procedure. It gives security to family members and ensures the accumulated funds are available if needed. Using the guide detailed in this blog, users can complete the e-nomination procedure on the internet to safeguard their family financially.
E-nomination shows the EPFO’s dedication to protecting its members and families. It helps it be simpler for members to access money and provides members satisfaction knowing their savings can help those they love. If you still have not finished your e-nomination yet, please do this soon to secure your family’s financial future.
FAQs
How does EPFO conduct e-nomination?
Enter Aadhaar number/Virtual id and hit the verify button. An OTP will be sent to a member’s Aadhaar-linked mobile number after which. Nomination information will be saved in EPFO database upon entering the OTP and pressing the submit button.
What are the benefits of EPFO e-nomination?
E-nomination provides the nominee or dependents (spouse, parents and children) of the EPF account holder the power to withdraw funds (EPF, EPS & ELDIS) upon death.
How to check e-nomination status in EPFO?
Step one: Write down your name. Visit EPFO Website epfindia.gov.in.
Step two: Enter the UAN, password and captcha to log in.
Step 3: Click the ‘Sign in ‘button.
Step 4: Under the ‘Manage’ tab select the ‘E-nomination’ option – Here the account holder sees the existing nominees.
What are the nomination rules for PF?
Members shall name their spouse along with all children in prescribed form. One individual might be nominated in case the individual has no family. But such a nomination will be nullified once the member has a family.
Is full PF withdrawal nomination mandatory?
No, e-nomination isn’t necessary for filing advance claims. And there is no last date for filing an e-nomination for your EPF account.
