EPFO: Nomination is a crucial aspect of financial planning that can ensure your chosen beneficiaries receive your assets and investments after you pass away. It is available for various financial products such as life insurance policies, bank accounts, mutual funds, provident funds, and other investment instruments. A change in your personal situation, however, may have an impact on your choice of beneficiaries, so it’s crucial to periodically examine your nominations to make sure they still reflect your current preferences.
One of the most significant areas where nomination plays a crucial role is the Employees’ Provident Fund Organization (EPFO). The provident fund, pension, and insurance schemes for employees in India’s organised sector are managed by EPFO, a statutory organisation under the Ministry of Labour and Employment. In accordance with the EPF scheme, the employer and employee each contribute a specific portion of the employee’s base salary to the PF account. At retirement or in the event of the employee’s passing, the accumulated funds in the PF account are then distributed to the employee or their nominee(s).
EPFO has recently introduced an e-nomination facility that makes it easier for members to nominate their beneficiaries online. Only Aadhaar confirmed UAN holders are permitted to file e-nominations, and the facility is available with e-sign. Aadhaar verification is a prerequisite, which means that the member’s name, birthdate, and gender are checked against his or her Aadhaar. The link to file an e-nomination will open once the profile section has been updated.
Before filing e-nomination, it is crucial to keep in mind a few essential things. For instance, if the member wants to nominate only a few family members, he/she should add those family members. Even if the member does not want to designate his or her husband or children under PF, they should be added if the person is married and has a family. Spouse and children are defined as family for the Pension Fund, and their names should be added to the family list. The Aadhaar number and photo of the family member should be ready before starting the filing process.
To complete the e-nomination process, a step-by-step approach must be followed. Firstly, family members should be added, followed by uploading a photo and entering Aadhaar for each family member. The name, birthdate, and gender of the family member submitted by the member are checked against to the Aadhaar data. Once the verification is successful, the family will be added. Information about a bank account is optional. Once everything is finished, a PDF is produced, and the member must electronically sign the PDF using Aadhaar-linked mobile OTP authentication. It must be noted that e-nominations that are only filed and not e-signed will not be considered for action in the event of the member’s demise. Post the PDF is e-signed the e-nomination becomes complete.
To e-sign, the member should click on the E-sign link, select the checkbox, and enter either the Aadhaar number or Virtual ID for Aadhaar-Based e Authentication. After that, an OTP will be sent to the member’s Aadhaar-linked mobile number. The nomination information will be saved in the EPFO database after entering the OTP and clicking the submit button. In case the member wants to e-sign against the Virtual ID, a 16-digit Virtual ID can be generated through the UIDAI website.
Read more: From PPF, SCSS to NSC: Top 5 Post Office Saving schemes for risk-free investment and guaranteed returns
