Confused About EPF Withdrawal: Who Are the Legal Heirs in Our Case?

Hello Respected Members, I am going through a lot of confusion in trying to get the EPF withdrawal claim of my father settled.

Case Details

My father untimely and suddenly expired in April 2009. At that time, he was employed with a company which he had joined about 8 months prior to his demise. Before that, he was working with a company in Hyderabad and he had submitted PF transfer papers from Hyderabad EPFO to the present Gurgaon EPFO PF account. But even before the PF got transferred, he passed away. We waited for the PF transfer from Hyderabad EPFO to Gurgaon to get completed before withdrawing his total EPF from Gurgaon EPFO. The transfer process took around 3 years (after repeated follow-up), and the transfer happened around May 2012. Following this, we submitted PF withdrawal papers to Gurgaon EPFO in the name of my mother (who was nominated by my father as the nominee through Form-2 declaration). We submitted an employer-attested copy of Form-2 as well along with the withdrawal papers.

Current Situation

However, now the Gurgaon PF office came back saying that, as per them, the Form-2 was never received by Gurgaon EPFO from the employer until the same was received along with withdrawal papers. So, they cannot treat this nomination form as valid and will ignore this nomination and will equally distribute the PF amount between the legal heirs. My question is, who are the legal heirs in our case?

Our surviving family consists of my mother and her two daughters (including myself).

Family Details as of April 2009 (at the time of my father's death):

- Wife: 50 years
- First daughter: >25 years, unmarried
- Second daughter: >25 years, unmarried

Family Details as of May 2012 (when submitting the PF withdrawal claim):

- Wife: 53 years
- First daughter: >25 years, Married
- Second daughter: >25 years, Unmarried

The PF department is now saying that the PF withdrawal amount will get divided equally between Mother, Daughter1, and Daughter2 (as both daughters, even though were greater than 25 years of age, but being unmarried AT THE TIME of DEATH will be eligible for the PF amount, including EDLI claim).

However, another department in the PF office is contesting this. As per the other department, the definition of legal heir is considered per the family status AS ON THE DATE OF THE CLAIM and NOT as on the date of death. So, as per today's family status, only Mother and one daughter are valid claimants.

Request for Guidance

Can experts please guide on what is correct? They have complicated our PF claim amidst all this confusion (one department saying something and the other within the same PF office saying something else). Every time they call us requiring a new PF withdrawal form with a new name. Initially, we had submitted the forms with only my mother as the claimant. Then they asked for my sister's form and now they are asking for my form as well. We just want this to get settled and have really no problem whether the whole money comes to our mother or gets divided between the three of us, as internally we intend to transfer everything to our mother.

Please advise, how should I tackle this? Is there any document which states if legal heirs are identified based on the current date family status or family status on the day of death?

Please, please someone help us.

Thanks,

Ritu

I read your case. I don't know about the documents as you have asked, but you can tackle this situation. Just do one thing: whatever forms the PF department requires, fill them up and submit them from your end. This way, if you need to go to labor court, it will be strong proof for you.

As it's a centralized procedure, we cannot challenge them on why they are doing this. There might be some internal procedures they are following. Follow their guidance and focus on the fact that your father's money is with them, and you want that amount as early as possible.

After providing everything, if you do not get results, then you can go to the labor court.

Regards

Thank you for your responses. I have been visiting the PF office almost every week. I have also met the PRO and APFC. One tells me something, the other tells something else. The PRO said you need to submit the claim form for the married daughter (as she was unmarried at the time of her father's death) as well. The accounts department is saying not to submit the claim for the married daughter, as she is married today and the withdrawal claim is filed on this date, so the current status is valid. They said, in case you submit the claim of the married daughter, you will get into trouble for filing an invalid claim, and the PF settlement will get into a dispute. Whereas the PRO is saying that the claim will be processed only when the withdrawal papers of the married daughter are also submitted.

I am caught in between this tussle, not knowing what is the right thing to do. Should I submit the claim or not? We just want to get this done soon.

Thanks,
Ritu

I have submitted an affidavit with the actual details. After that, I will apply for PF because, as per the rule, the dependent's amount for my sister's marriage is required to be claimed. You can consult a legal advisor too; they can guide you in the right direction to resolve this issue.

Thank you.

Regards

Dear Ritu, No need to worry, I have reviewed your case thoroughly. I want to inform you that if you are currently submitting your claim form, there is no need to submit a claim form for your married sister. As of now, she is not dependent on your mother, so there is also no requirement to mention her name in the PF Claim Forms.

Please submit the claim forms, i.e., Form 20, Form 10D, Form 5IF for both your mother and yourself, and obtain acknowledgment from the RPFC, Gurgaon. Keep a copy safe for your records. If your claim is not processed by RPFC Gurgaon within one month, then send a scanned copy of the acknowledgment to [Email Removed For Privacy Reasons].

Regarding Your Query About Your Married Sister

Please refer to the attached RPFC Rules for the accumulation of a deceased member.

I hope this clarifies your doubts.

Regards,
Sunil Sharma
Senior Executive HR
Email: [Email Removed For Privacy Reasons]

Thank you for the response, Mr. Sharma. This is exactly what I was told by the PRO as well. He said that married daughters are not entitled to the claim, but the question is what date is to be considered for determining the correct marital status for this purpose. Is the marital status as on the date of withdrawal form submission or the marital status as on the day of the death of the PF member relevant?

Since my sister was unmarried on the date of the death of our father, but is married now when we have submitted the PF withdrawal claim, will the claim be decided based on the marital status on this day or on the day of the demise of the PF member?

Looking forward to your reply. Thanks in anticipation.

Regards,
Ritu

One department in Gurgaon PRO is insistent on submitting my married sister's claim form, as they state that the marital status is considered as of the day of death and not the present marital status. They are saying that the papers will NOT be processed and will get rejected on the basis of an incomplete claim if the withdrawal papers of my married sister are not submitted.

However, another department is saying that if the claim papers of my married sister are submitted, then the claim will get rejected due to a false claim and will escalate into a dispute. Within the same PF office itself, no one is clear, and different people are saying different things. We are in the middle of this situation and do not know which way to go.

Thanks,
Ritika

Yes. Initially, we were told that since both the daughters were over 25 years of age on the date of death, only withdrawal Form-20, Form-5IF, and Form-10D needed to be submitted in my mother's name. We submitted the completed set of papers on June 19, 2012, and I also received an SMS confirming the same. Then on June 25, 2012, I received a call from the PF office stating that even though they had processed our claim, the papers came back from the approving authority as that person said the unmarried daughter is also entitled to receive the claim. Hence, they asked that Form-20 and Form-5IF in my name would also be required. Even though I am over 25 years of age, being unmarried means the PF amount will be split equally between me and my mother. So, I filled both forms and went to submit them yesterday at the PF office. The person handling our claim took my papers to a senior colleague to verify the completeness of the papers. However, this time, the official said that since my sister was unmarried at the time of our father's death, her claim forms (Form-20 and Form-5IF) are also required. Otherwise, the papers will not be processed, or if processed, 1/3rd of the total will be retained by the PF office as that can only be claimed by my sister. The PF office already has my mother's and my completed forms. I don't know if I should submit my sister's forms too. Please advise.

Thanks,

Ritu

Understanding the Dimensions of Your PF Claim

Your problem has three dimensions. From the PF & EDLI angle, the Date of Death is relevant, and from the Pension Scheme, the Date of Claim is relevant. For PF, it is Form 20, and for Pension, it is Form 10D. So, don't be confused.

Meet the PF Commissioner, Mr. Beerbal Meena, a nice officer, and his direction will be final. Ask them to settle your claim first for PF & EDLI and then consider Pension.

I am confident that your problems will come to an end.

Regards

If the problem remains the same after your several efforts, then you can go for an RTI. Just ask the EPF department about the appropriate procedure in your scenario, and you will get all the required information in writing from the department. Through RTI, the EPF Department will be constrained to provide you with the appropriate procedure. After availing of the procedure, act according to that. After that, the EPF Department will not be in a position to deny you, and you will have solid proof to support your case.

Thanks,
J.B. Singh

I have gone through your claim procedure. To check on the claim procedure, I suggest you meet with the concerned Assistant Commissioner of PF. In the normal procedure, the claims are authorized by the last employer. Please seek the help of the person dealing with PF or the authorized person who signed the forms. They will be able to communicate with the concerned clerk and head in your case. This is only to prevent confusion and trouble when expecting returns from this settlement.

Settlement of a Deceased Member's Dependent Claim

For the settlement of a deceased member's dependent claim, we normally submit legal heirs as of the date of claim submission. Regarding a married daughter, you should submit an affidavit stating that you are married and not covered under the definition of a family member as a dependent. In the case of your sister, since she is unmarried, she is required to submit the claim. If the PRO is causing trouble in your case, please approach your father's last employer with the Regional PF Commissioner. If the matter cannot be resolved for a proper settlement, seek support through consultants if you cannot find a way out. Nowadays, everyone has a stake in settling claims.

In our organization, as an employer, we view it as a welfare scheme for the dependents of employees and work with the PF department to identify the cause and settle matters on humanitarian grounds.

Required Documents for EPF Withdrawal Claim

Along with the 03 Forms 10-D, Form-20, and 5IF, you need to submit the following documents:

1. Death Certificate (duly attested, 2 copies)
2. Surviving Family Members Certificate (SFM available with the P.F Department)
3. Form-2. You can revert back to your father's office to forward another copy of the same as a Photostat copy is required by the P.F authorities.
4. Three passport-size photos of each member
5. You need to open a separate bank account in the P.F nominated banks like SBI, Canara. No joint accounts for receiving a pension. Photostat copies of the passbook.

You can produce the marriage certificate copy of your sister as proof. Let them decide whether she is eligible for the P.F claim. You can state her marital status in the SFMC form.

Regards,
NR HR Coordinator

The married girl whose husband is alive is not eligible for provident fund (refer to para 70 (ii) - c under Employees' Provident Funds Scheme, 1952). Children, upon attaining the age of 25, are not eligible for pension (refer to para 16 (3) - c under Employees' Pension Scheme, 1995).

You can file papers in your case as a claimant or may state via affidavit to pay full benefits to your mother.

Best of luck!!!

Regards

Dear Madam, I have reviewed your case. PF Offices must consider the situation at the time of demise because they start the effect of benefits from the date of death. Therefore, please present all the documents that had status at the time of demise to the PF Office with necessary forms.

Regards

Hello Respected Members,

I am going through a lot of confusion in trying to get the EPF withdrawal claim of my father settled. Let me state our case in detail.

Background of the Case

My father untimely and suddenly expired in April 2009. At that time, he was employed with a company that he had joined about 8 months prior to his demise. Before that, he was working with a company in Hyderabad and had submitted PF transfer papers from Hyderabad EPFO to the present Gurgaon EPFO PF account. However, before the PF got transferred, he passed away.

We waited for the PF transfer from Hyderabad EPFO to Gurgaon to get completed before withdrawing his total EPF from Gurgaon EPFO. The transfer process took around 3 years (after repeated follow-up), and the transfer happened around May 2012. Following this, we submitted PF withdrawal papers to Gurgaon EPFO in the name of my mother (who was nominated by my father as the nominee through Form-2 declaration). We submitted an employer-attested copy of Form-2 as well along with the withdrawal papers.

Current Situation

However, now the Gurgaon PF office came back saying that according to them, the Form-2 was never received by Gurgaon EPFO from the employer until it was received along with the withdrawal papers. Therefore, they cannot treat this nomination form as valid and will ignore this nomination, distributing the PF amount equally between the legal heirs. My question is, who are the legal heirs in our case?

Our surviving family consists of my mother and her two daughters (including myself).

Family Details as of April 2009 (at the time of my father's death):

- Wife: 50 years old
- First daughter: over 25 years old, unmarried
- Second daughter: over 25 years old, unmarried

Family Details as of May 2012 (when submitting the PF withdrawal claim):

- Wife: 53 years old
- First daughter: over 25 years old, married
- Second daughter: over 25 years old, unmarried

The PF department is now saying that the PF withdrawal amount will be divided equally between Mother, Daughter 1, and Daughter 2 (as both daughters, even though over 25 years of age, were unmarried at the time of death and are eligible for the PF amount, including EDLI claim).

However, another department in the PF office is contesting this. According to the other department, the definition of legal heir is considered based on the family status as of the date of the claim and not as of the date of death. So, as per today's family status, only Mother and one daughter are valid claimants.

Request for Expert Guidance

Can experts please guide on what is correct? They have complicated our PF claim amidst all this confusion (one department saying one thing and the other within the same PF office saying something else). Every time they call us, requiring a new PF withdrawal form with a new name. Initially, we had submitted the forms with only my mother as the claimant. Then they asked for my sister's form, and now they are asking for my form as well. We just want this to get settled and have no problem whether the whole amount goes to our mother or gets divided between the three of us, as we intend to transfer everything to our mother internally.

Please advise on how I should tackle this. Is there any document that states if legal heirs are identified based on the current family status or family status on the day of death?

Please, someone, help us. Thank you.

Regards,
Ritu