Navigating PF Claims: Can My Sister Access Her Late Husband's Funds Without a Nomination?

Dear Kamal and Alam Sirs, I would like your views on the information below. My sister was married to my brother-in-law on 21st May 2018. Unfortunately, he passed away in a freak road accident on 17th Jan 2020. He did not update his nomination after the marriage. My sister's in-laws seem to be focused on money and are exploring various avenues to access the earnings my late brother-in-law accumulated over the years. He had been with the company since its inception, working diligently for 14 years. Over the last 4 years, the company expanded, and they started deducting PF. The legal requirements for the final settlement and PF claims are quite perplexing for us. My sister has the marriage certificate and her husband's death certificate, where she is referred to as the wife. Please assist.

Regards, Well Wisher

I am sorry for the interference. Knowing that the post is meant for Kalam and Alam, let me say that there are a lot of confusing verdicts on incidents like this. There are different views with regard to the nominee and legal heir. A nominee is a custodian of the fund, whereas the latter is the actual person who should receive the benefits. The arrangement will be like the nominee receiving the fund and then transferring the same to the legal heirs. This might lead to litigation.

Provident Fund Nomination

In the case of the Provident Fund, the general view was that on marriage, the earlier nomination submitted in Form 2 by the member would become invalid. But there have been defending views on this, saying that the EPF Organization is bound to pay the amount to the nominee.

Pension Fund Eligibility

In the case of the Pension Fund, only the spouse and children are family members who are eligible to receive the pension of a deceased member.

Since the legal heir certificate is a basic document for all purposes, obtaining it should be done on priority. If the legal heir applies for the PF accumulations, the same may be put on hold because of the existence of a nominee. Unless an NOC is submitted, the PF will not be released.