Navigating Death Claims and Family Pension with Multiple PF Accounts: Need Guidance from Seniors

If a person is a part-time worker and has 3 to 4 PF accounts in different organizations, and all are suddenly expired, then how is his death claim settled? What about his family pension and how does it accumulate? Seniors, kindly confirm my doubt.

Hi! As you mentioned, the employee is working on a part-time basis in different organizations. If all these companies come under a single PF code, then convince this employee to keep only one PF account active because all contributions go under the same PF code. In such a situation, he can transfer the amount from other PF accounts into any one PF running account of his choice. However, if all companies have different PF codes, he needs to maintain his different PF accounts and ensure that all his nomination procedures are complete.

Pension Contribution and Multiple PF Accounts

It is a hypothetical issue since the maximum eligible wages for a pension are Rs. 6500. Hence, if the employee has more than one PF account in his name running concurrently, he should declare the same to the PF office. This declaration ensures that the total of employers' contributions to the pension is restricted to a total wage of Rs. 6500. Any excess amounts of employers' contributions should be reversed to the EPF account of the member.

If the above was not done inadvertently due to the limited knowledge of the member and his part-time employers, in case his total wages on all the accounts exceeded Rs. 6500 and the corresponding pension contribution exceeded the limit, which was paid for more than 12 months, in the event of sudden death, his dependents (spouse and two children up to 25 years) are entitled to receive a pension at a proportionately higher rate.

Regards,
M. Venkatraghavan

PF Account Transfer and Settlement Process

It is very simple. If the member is alive, then he can apply to the PF for transferring the amount to a single account for accumulation. You need not worry about the limit, etc. However, this cannot continue as working in different companies at the same time will reflect a problem.

If the member is not alive, then the claimant will have to approach the different companies, request the company to issue the concerned form to transfer the amount to a single account, and apply for getting the settlement. The family pension is automatically taken care of after the settlement.

Mr. Venkatraghavan is correct. The pension in such a case will be at a higher rate than what is based on the ceiling of Rs. 6500/-. The nominee will be required to fill up Form-13 in such a case, indicating the previous employment details. The forms will be filled up from the last most employer company on the day of death. The EPFO will then arrange to get the details of all such existing accounts transferred to one place and decide the payment of PF, Pension, and EDLI (if applicable).

Sincerely, Amit

Thanks for updating my views. I share the same perspective, but I would like to clarify something. Thank you for your support and for clearing my doubts. The views expressed above are all from experts, but is this information mentioned in any PF act or legal guidelines? If possible, please provide an update.

Again, thank you all for supporting me.

Separate PF Accounts: Is There a Problem?

Is there a problem if the PF accounts remain separate? The family will have to make efforts to get money from multiple accounts. They can get separate EPF cheques, that's all.

Handling Multiple EPF Accounts and EPS Pension

Getting payments from separate EPF accounts is no problem. However, in the EPS scheme, more than one pension cannot be sanctioned for a single member or their dependents.