In light of the evolving changes, it is more imperative now than ever to know the rules associated with EPF. Here are some rules related to nomination and payments related to the fund.
Rules related to the nomination:
- The EPFO member needs to nominate a member to receive the amount standing to the credit of fund in the event of his death before the amount standing to his credit becomes payable.
- The members of EPFO have the right to distribute the amount standing to their credit in the fund amongst their nominees at their own discretion.
- Also, the nomination shall be made in favour of one or more persons belonging to the family. The nomination made in favour of a person who is not a family member is invalid. A fresh nomination shall be made by the member on his marriage.
- However, in a situation where the member does not have a family, the nomination may be in favour of any person or persons. In a situation where the member of EPFO acquires a family, then nomination shall forthwith be deemed invalid and a fresh nomination shall be made belonging to the family.
- If the nomination is in favour of a minor, then the member shall appoint a major person of the family to be the guardian of the minor member in the event of the member predeceasing the nominee and the guardian so appointed.
- The nomination made while becoming the member of the EPFO may be modified by a member after giving a written notice of the intention to do so.
- In a situation where the nominee dies before the member of the EPFO, the interest of the nominee shall avert to the member. The member shall make a fresh nomination in respect of the same.
Source: Financial Express