Struggling to Access Mother's PF and Pension Funds: How Can We Help This Employee?

One of our employees, whose mother was working in a different company, passed away due to a heart attack. Now, the employee wishes to withdraw the PF as he is the sole nominee for that fund, being the only son she had, as his father has also passed away.

However, the PF authorities have informed him that he cannot withdraw the PF amount because his mother worked for more than 10 years, making her eligible for a pension. Additionally, he is unable to withdraw the pension amount as he is over 25 years old.

In both scenarios, he is unable to access his own funds. We are seeking guidance on any potential solutions for him to withdraw the amount, as he is unmarried and only 26 years old. Your assistance in this matter would be greatly appreciated.

Regards,
Arun J

Family pension is applicable only to the two children of the deceased up to the age of 25 years. In this case, as he is more than 25 years old, he is not eligible for the pension.

Regards,
Rajeev Dixit

Question: How Can He Get the Money?

Sir, that is my question: How can he get the money? Please suggest any solution for this. In both cases, he is not getting money now. What does he have to do?

Regards,
Arun J.

Withdrawal of Provident Fund and EDLI Benefits

You have to fill out Form No. 20 for withdrawal benefits for Provident Fund accumulations. As the dependent son of the deceased has already crossed 25 years of age, he would not be eligible for withdrawal benefits under the Employees' Pension Scheme, 1995. You have to apply for the withdrawal of PF accumulations by filling out Form No. 20 and getting it signed by the employer.

Additionally, if the death of the member occurred while in service, the dependents of the deceased will be eligible for EDLI benefits in accordance with the provisions of the EDLI Scheme. Please do not forget to attach the death certificate attested by the employer to claim PF and EDLI accumulations.

Regards,
R. B. Yadav

There seems to be confusion that the PF guys are trying to exploit. The contribution has two parts. The first part is the employee contribution and the interest on that. That definitely belongs to the nominee, and irrespective of his age, he will receive that money.

The second part is what the company is contributing. Part of that amount goes to the family pension fund, which the nominee will not receive as he has crossed the limit. The part of the employer contribution that went to the PF accumulation is what the nominee can receive. Ask your PF consultant to assist him. They usually have contacts within the department and can expedite the process of receiving the money.

Dear all seniors,

Please do not describe the other benefits. Please suggest what to do when the claimant crosses the limit of 25 years old and there are no other younger family members.

Pardeep Sharma

The nominee will be eligible for the following benefits:

1. PF accumulations
2. Insurance
3. Lumpsum in lieu of pension (Return of capital)

He needs to file Form 20 & 10(C) along with the death certificate and family certificate. If he needs any help, please let me know.

Regards,
JMK

Understanding Death Claim Procedures for PF and Pension

Let the members know about the claimant's mother's different company's service period or different company name. If she was working during her death, then her son is liable to receive the whole amount of PF and pension fund along with insurance.

Procedure for Death Claim

The procedure for death claims should be followed. If she left the amount in another company, then her son can claim both by providing the death certificate if he is the nominee. Members should be informed about the details of the service.

Thanks.

The above replies are confusing. The following needs to be taken:

1. Since his mother has worked in different companies, it needs to be ensured that PF and EP contributions from all companies are transferred to the last company where she was working.

2. On confirmation, legal heirs can apply for withdrawal of benefits as narrated in the earlier discussion.

Regards,
RDW

Return of Capital in Case of Dependent Parents and Children

Return of capital is applicable only in the case of survival-dependent parents, not in the case of dependent children. The surviving child in this case will be eligible only for the PF accumulation contributed by the member until her death (12% + 3.67% of employer share) plus interest. If the death occurs while in service, an additional benefit of EDLI will be given to the child in lieu of insurance.

Regards,
R B Yadav
Advocate