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
EPF Scheme Clauses
I have just come across two 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 a 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 dependent 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 Return.
Regards
From India, Mumbai
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3a) my 82-year-old mother
b) one married brother
c) two married sisters
EPF Scheme Clauses
I have just come across two 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 a 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 dependent 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 Return.
Regards
From India, Mumbai
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Nomination to the Employees' Provident Fund
If your query is about nomination to the Employees' Provident Fund, this information will help you. As you mentioned in your query, your mother should be nominated for the EPF. Once you are married, you will need to submit Form 2A again with your spouse's details, and she will become the nominee for the EPF after your marriage.
With Regards,
S. Magesh
From India, Mumbai
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If your query is about nomination to the Employees' Provident Fund, this information will help you. As you mentioned in your query, your mother should be nominated for the EPF. Once you are married, you will need to submit Form 2A again with your spouse's details, and she will become the nominee for the EPF after your marriage.
With Regards,
S. Magesh
From India, Mumbai
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I have nominated my mother, who is 82 years old, because only she possibly falls within the definition of 'family' as per EPF. However, the EPF rules specify "dependent parents" as family. Since my mother has her own source of interest and rental income, and files her own Income Tax Returns, can she still be classified as "dependent"? Of course, she lives with me in my house, and I look after her. So, is my nomination of my mother for my EPF account valid and correct?
From India, Mumbai
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From India, Mumbai
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Nomination of Close Relatives Under EPF Rules
Can I appoint my sister, brother, or nephew as my nominee if my mother predeceases 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 will the entire accumulations 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.
From India, Mumbai
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Can I appoint my sister, brother, or nephew as my nominee if my mother predeceases 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 will the entire accumulations 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.
From India, Mumbai
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Dear Kapil,
The nomination made in favor of 'Mother' is valid at any rate as long as you are unmarried. There is no definition given of 'Dependent' under the PF Act, nor is the term explained in the General Clauses Act 1938. Hence, the common understanding of the word must prevail, which means that some sort of help and assistance is rendered. Since you have explained that your mother is partially dependent on you, the same should hold good.
In the event of the nominee predeceasing you, then the nomination has to be changed. In that case, as long as you are unmarried, you can nominate your brother, sister, nephew, niece, etc. However, if there is no valid nomination, the successor as per the Hindu Succession Act 1956 would be eligible to apply. Your brother, sister, etc., would be Class II successors, and in the absence of Class I dependents, all Class II relatives have an equal claim.
I would suggest that you prepare a proper 'WILL' with the help of an advocate, get it executed, and make your intentions clear. Though the PF Act does not mention wills, such an action would help resolve mutually conflicting claims of the successors in interest, as per your wish.
Regards,
KK
From India, Bhopal
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The nomination made in favor of 'Mother' is valid at any rate as long as you are unmarried. There is no definition given of 'Dependent' under the PF Act, nor is the term explained in the General Clauses Act 1938. Hence, the common understanding of the word must prevail, which means that some sort of help and assistance is rendered. Since you have explained that your mother is partially dependent on you, the same should hold good.
In the event of the nominee predeceasing you, then the nomination has to be changed. In that case, as long as you are unmarried, you can nominate your brother, sister, nephew, niece, etc. However, if there is no valid nomination, the successor as per the Hindu Succession Act 1956 would be eligible to apply. Your brother, sister, etc., would be Class II successors, and in the absence of Class I dependents, all Class II relatives have an equal claim.
I would suggest that you prepare a proper 'WILL' with the help of an advocate, get it executed, and make your intentions clear. Though the PF Act does not mention wills, such an action would help resolve mutually conflicting claims of the successors in interest, as per your wish.
Regards,
KK
From India, Bhopal
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EMPLOYEES' PROVIDENT FUND & MISC PROVISIONS ACT '1952.ppt
EMPLOYEES' PROVIDENT FUND & MISC PROVISIONS ACT '1952 [Compatibility Mode].pdf