EPFO: In order to guarantee that your chosen beneficiaries will receive your assets and investments upon your death, nomination is an essential part of financial planning. It is available for a wide range of financial products, including bank accounts, mutual funds, provident funds, life insurance policies, and other investment instruments.
However, your choice of beneficiaries may be affected by changes in your personal circumstances; therefore, it is essential to review your nominations on a regular basis to ensure that they still reflect your current preferences.
The Employees’ Provident Fund Organization (EPFO) is one of the most significant areas in which nomination plays a crucial role. EPFO, a statutory organization under the Ministry of Labour and Employment, is in charge of managing the provident fund, pension, and insurance plans for organized sector employees in India.
The employee and the employer each contribute a specific amount of the employee’s base salary to the PF account in accordance with the EPF scheme. The accumulated funds in the PF account are then distributed to the employee or their nominee(s) upon retirement or upon the employee’s death.
EPFO recently launched a facility for e-nomination, making it simpler for members to nominate beneficiaries online. E-nominations can only be submitted by UAN holders who have their Aadhaar confirmed, and the facility is made available with e-sign.
Aadhaar confirmation is an essential, and that implies that the part’s name, birthdate, and orientation are checked against their Aadhaar. After the profile section has been updated, the link to file an e-nomination will open.
It is essential to remember a few essential details prior to submitting an e-nomination. For instance, if a member wishes to nominate only a few members of their family, they should include those members. If a member is married and has a family, they should be added to PF even if they do not want to designate their husband or children.
The Pension Fund defines family as the spouse and children, so their names should be added to the list of families. Before beginning the filing process, the family member’s Aadhaar number and photo should be ready.
A methodical approach is required to finish the e-nomination procedure. After adding family members, uploading a photo and entering Aadhaar for each member should be the next steps. The member’s family member’s name, date of birth, and gender are compared to the Aadhaar data. The family will be included once the verification goes well. A bank account’s information is optional.
A PDF is created after everything is finished, and the member is required to electronically sign it using Aadhaar-linked mobile OTP authentication. It should be noted that in the event of a member’s death, e-nominations that are only filed but not signed electronically will not be taken into consideration for action. When the PDF is electronically signed, the e-nomination is complete.
The member should select the E-sign checkbox, enter their Aadhaar number or Virtual ID for Aadhaar-Based e Authentication, and then click the E-sign link. After that, the member’s Aadhaar-linked mobile number will receive an OTP.
After entering the OTP and clicking the submit button, the information about the nomination will be saved in the EPFO database. A 16-digit Virtual ID can be generated through the UIDAI website for members who wish to e-sign against the Virtual ID.
