Thursday, 26 September 2019

EPF Nomination Rules: Getting married makes your EPF, EPS nomination invalid

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EPF member is required to make nomination using Form 2. Recently, EPFO has launched  the e-nomination facility on the member sewa portal.

As per EPF scheme rules, once you get married the previous nomination made by you automatically becomes invalid in your PF and EPS account.

Did you know that when you get married your EPF and EPS nominations become invalid? As per the rules of Employees' Provident Fund (EPF) Scheme, 1952, any nomination made by you for your EPF and EPS accounts automatically becomes invalid when you get married and you are required to make a fresh nomination.

Puneet Gupta, Director, People Advisory Services, EY India says, "As per the Provident Fund Scheme, a fresh nomination is required by the member on his / her marriage and any nomination made before marriage shall be deemed to be invalid. This means that if you have joined the EPF and EPS before your marriage then post your marriage you will have to make a fresh nomination as the previous nomination made will be considered invalid, i.e., as if you have never made nomination."

Saraswathi Kasturirangan, Partner, Deloitte India says, "The nomination in EPF and EPS made prior to marriage automatically stands cancelled after marriage. As per the rules of the EPF scheme, an EPFO member is required to do fresh nomination after marriage."

  • Rules of nomination in EPF and EPS account

As per the EPF Act, only defined family members can be nominated in an EPF account. Ms. Kasturirangan says, "Under the EPF Act- (i) in the case of a male member ''family'' means his wife, his children (whether married or unmarried), his dependent parents and his deceased son's widow and children and

ii) In the case of a female member, "family" means - her husband, her children (whether married or unmarried), her dependant parents, her husband's dependent parents and her deceased son's widow and children."

However, the rules of nomination for EPF and EPS are different. Gupta says, "Family, in respect of whom nomination may be made, is defined differently for the purpose of Provident Fund Scheme and Pension Scheme. In the case of EPF, a member has an option to nominate even his/her parents, apart from spouse and children. However, in the case of EPS, a member can nominate only his spouse and children."

Gupta says, "After marriage, you can still nominate your parents (irrespective of your gender) or any other family member as defined in the law in your EPF account. However, for your pension scheme account, you can only nominate your spouse and children after your marriage."

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