When you lose a loved one, it can be one of the hardest things a person can go through. At such a challenging moment in your life, it can feel daunting to deal with all the financial and legal issues. One aspect that may not be immediately thought of by families is claiming the Employees’ Provident Fund (EPF) for the deceased member. The EPF is a social security benefit to provide a source of income support for employees and their families, and knowing how to claim after someone’s death will help you ensure the deceased’s beneficiaries receive what is due to them without any additional delay.
This article will take you through the process step-by-step to make it clear and straightforward.
What is EPF, and why is it Important?
EPF is a retirement benefits scheme initiated by the Employees’ Provident Fund Organisation, India. Both the employer and the employee contribute a portion of the employee’s salary to the EPF account each month. This amount builds up over the years into a considerable amount on retirement because it includes the employee contribution, interest, and the employer contribution.
In the unfortunate circumstance of an employee’s death, the EPF account provides some sort of financial support to the family or legal heirs. If the employee passes away, the EPF scheme allocates this amount to the nominee or legal heirs. It is essential that you understand the procedure to stop a late claim. A claim is delayed because it needs to go through follow-through activities that become a problem when not supplied together.
Who Can Make an EPF Claim in the Event of Death?
The process begins with the claimant identification step. Two major conditions arise.
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Nominee Present
The EPF account will always have a nominee selected (usually a spouse or family member), and the nominee has the right to claim the EPF amount. The nominee will be on the EPF records, which can be seen on EPF’s portal or on the employee’s Form 2, or Siemens UAN, possibly has an updated Nomination option to see the nominee updated.
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Nominee Not Present
In the case that an employee has not appointed a nominee, the deceased’s legal heirs can claim the EPF amount. Depending on the law on succession, the legal heir most often consists of the spouse, children, parents, or siblings. In this case, the claimants will need to provide legal documentation to show legal eligibility.
Necessary Documentation to Claim EPF Following a Death
Specific documents must be submitted to process an EPF claim and are crucial to verify the identity of the claimant and their relationship with the deceased employee. These usually include-
- Employee (deceased) Death Certificate: This should be issued by the local municipal authority or hospital, and is a must to prove the employee is deceased.
- EPF Account Information of the Deceased: This may include the UAN. The PF account number and the name of the organisation under which the employee was employed.
- Nomination Form (if available): This may include Form 2 or updated nomination information in the UAN portal.
- Claimant’s Identity Proof: This may include Aadhaar, PAN or passport.
- Claimant’s Bank account information: The EPF amount will be deposited directly in the nominee or heir’s bank account.
- Legal Heir Certificate (if there is no nominee): This is issued by the local revenue authority or court and establishes the rightful claim of the heirs.
- Cancelled Cheque of the Claimant’s Bank Account: This ensures the correct deposit of the EPF amount.
Steps for Claiming EPF in Case of Death
The EPF claim process can be completed online or offline. Below is a step-by-step process for both claim processes-
Online Claim through EPFO Portal
- Log into the EPFO Portal: Go to the EPFO member portal and log in with the deceased employee’s UAN. If you do not have access to the UAN, your employer may assist you in retrieving the UAN.
- Confirm Nominee Information: Check to see whether or not the nominee has been updated in the portal. If it has, then you will move forward under the nominee section.
- Complete the Claim Application: Complete either Form 20 (for final PF settlement) or Form 10C based on the type of claim you are submitting. Be sure to indicate that the claim is based on the employee’s death.
- Upload Documents: Upload the scanned copies of the death certificate, nominee identification documents (as stated above), identity verification documents, and bank account details.
- Submit Claim: Once you submit your claim, the EPFO will verify the documents. After approval, the EPF amount will be electronically deposited directly into the claimant’s bank, usually within 15–30 days.
Offline Claim through Employer/EPFO Office
- Download Forms: Either download Form 20, Form 2, and Form 10C from the EPFO website, or obtain those forms from the regional EPFO office.
- Assemble Documents: Take note to attach the relevant documents, including a death certificate, proof of nominee, identity proof, and details for bank payment.
- Submit to the Employer or EPFO Office: Deliver all relevant forms to your employer or to the local EPFO office. If you submitted the forms to the employer, they will send the documents to the EPFO.
- Verification and Payment: The EPFO will next verify all documents submitted to the office. After verification, the death benefit is credited to the claimant’s bank account.
Things to Consider
- Updating Nominee – Constantly ensure that you are updating whatever nominee you have on your EPF account. You may get married, have a new child, or lose a nominee – and you should update the account when this happens.
- Legal Heir Certificate – If there is no nominee, applying for a legal heir certificate may take some time, so you need to make that plan up front.
- Complete Documentation – Don’t leave out paperwork. If the claim is not fully documented, it may slow down the process. Make sure to double-check documentation and forms before submitting.
- UAN Portability – If the employee has changed jobs multiple times, no problem! As long as the UAN links to the PF accounts, the claim should not be complicated when an employee passes away.
Conclusion
Dealing with finances, such as claiming EPF, can feel quite overwhelming. However, if the process is understood clearly, families can be sure to access financial assistance in a timely manner, without added stress.
First, find out if there is a nominee or legal heir and collect documents to submit (death certificate, EPF account, proof of identity, etc.). Then, submit a claim either offline or online. A nomination and succession documentation will make the claim process easier.
If this procedure is followed, the family will be able to pocket the EPF benefit quickly and start to try to feel financial relief when going through this stage of loss. Remember, the best thing to do is to prepare, and being familiar with the process is best. Furthermore, it saves a lot of time when it counts, as it is unfamiliar, and all of this matters most in this moment.
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