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Kapil Tiwari (export executive)     27 December 2012

Nomination in employees provident fund for unmarried male

I am a member of the Employees Provident Fund and have been voluntarily contributing 100% of my basic salary (Rs.6,500/- per month) for the last several years. 


I am not married and do not intend to get married or raise a family. I have the following members in my  family:

a)my 82-year old mother

b)one married brother

c)two married sisters 

I have just come across 2 clauses in the EPF scheme :


1)"If a member has a family at the time of making a nomination, the nomination shall be in favour of one or more persons belonging to his family. 
Any nomination made by such member in favour of a person not belonging to his family shall be invalid."

2)"a family” means— 
(i) in the case of a male member, his wife, his children, whether married or unmarried, his dependant parents and his deceased son’s 
widow and children."

I have nominated my 82-year old mother. However, she has her own sources of income like bank interest, rental income, etc. and files her own Income Tax Returns.  But she lives with me in my house and I look after her well-being. Can she still be classified as a "dependant" parent? Other than my old mother, I have no "family" as defined in the Provident Fund Act, and hence no other choice. 

My queries are:

a)whether, my nomination of my mother as my "dependant" parent is valid and correct,  

b)that the entire amount(corpus) in my EPF account will be handed over to my mother without any undue complications in the eventuality of my death,

c)can I  appoint my sister or brother or nephew as my nominee, if my mother pre-deceases me (dies before me), and as long as I am not married even thereafter and do not have a "family" as defined in point 2 above? When I cease to have a "family" as per the EPF rules, can I nominate any other close  relative and the entire accumulations will then be paid to this nominee without complications in the eventuality of my death?

Dear Sirs, I shall be grateful to receive your advice and guidance.

Thanks and Best Regards/Kapil Tiwari 



Learning

 3 Replies

Advocate Rohit (Advocate)     27 December 2012

You can nominate your mother name at present as she is still alive irrespective whether she has a source of income or not.

 

Further, after her you can nominate your brother also as you don't have a family i.e. wife or children. Thus, there won't be problem in nominating. incase any objection is rasied by EPFO then you need to visit the office and speak to the concerned officer about it.

 

Also, you need to inform your brother and his wife about your EPF Nomination and providethem your EPF Account Number.

Otherwise your brother and sister needs to obtain succession certificate from the High Court and based on that the EPFO shall disburse the money in your PF account incase nomination is not accepted in your PF Account.

 

Regards,

Advocate Rohit Dalmia

9324538481

Mumbai

1 Like

M.S.R.Murty ( Manager (Admn))     27 December 2012

Dear Mr. Tiwari ji,

You can nominate any body from your family or from outside. But the nominee can not claim a complete right to the financial benefits by excluding the right of legal heirs of deceased person.  And also the legal heirs can initiate legal recourse against the nominee to claim their portion of benefits as per provisions of Law of Succession.  Here nominee is only a authorised person to receive the benefits of deceased person on behalf of legal heirs.  Please keep this view in your mind while nominating any body.

 

2 Like

Kapil Tiwari (export executive)     27 December 2012

Thank you Dalmiaji and Murtyji! I am very grateful for your clarification.

With Kind Regards/ Kapil Tiwari


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