EPF Form 2

The Employees' Provident Fund Scheme, 1952, mandates every employee to nominate one or more members to their EPF account. This nomination ensures that in the event of the member's demise, the nominated individual can withdraw the accumulated funds from the account. To facilitate this process, employees are required to fill out and submit EPF Form 2 to declare and nominate their family members. 

In this blog, we'll take a closer look at the EPF Form 2 and everything you need to know about nominating family members for provident fund benefits.
 

Details of EPF Form 2

EPF Form 2 is a crucial document required for the declaration and nomination of a beneficiary for an Employee Provident Fund account. Here is a detailed breakdown of the essential information you need to know about PF Nomination Form 2:

PF Form 2 Structure

PF Form 2 has four sections, each of which asks for specific information. Let's take a closer look at each section:

Section 1: General Information

The first section of PF Form 2 asks for general information about the EPF account holder. This includes details such as the account holder's name, date of birth, father's/husband's name, gender, marital status, account number, and permanent/temporary address. Additionally, the section asks for the date of joining the EPF and EPS nomination.

Section 2: Part A (EPF Proceeds)

The second section of PF Form 2 is for EPF proceeds. Here, the EPF account holder has to provide information about the nominee by filling in details such as their name, address, relationship with the member, and date of birth. 

The EPF account holder also needs to specify the total amount in Provident Funds that should be paid to each nominee. For a minor, the EPF account holder needs to provide the details of the guardian who may receive the amount during the nominee's minority. The section ends with the signature or thumb impression of the subscriber.
 

Section 3: Part B (EPS Proceeds) (Para-18)

The third section of PF Form 2 pertains to EPS proceeds. The EPS account comprises a total proportion of 8.33% out of the employer's 12% contribution to EPF. The EPS proceeds from a member's PF account are likewise distributed to eligible nominees.

Within this category, the EPF account holder must furnish particulars of the qualifying family member(s) who are entitled to receive the pension. These particulars comprise the family member's name, address, relationship with the member, date of birth, and the signature or thumbprint of the subscriber.

Furthermore, when nominating for the monthly widow pension (which is granted as per Para 16 2(a) (i) and (ii)), the EPF account holder is required to provide specific details regarding the nominee, including their name, address, date of birth, and their relationship with the member.
 

Section 4: Certificate by the Employer

The final section of PF Form 2 is the certificate by the employer. The employer needs to certify the details provided in the form and additionally needs to mention the name of the employee, the authorized officer's signature, date, place, designation of the officer, name and address of the organization, and stamp.

It is important to fill in PF Form 2 accurately and keep it updated in case of any changes in the nominee or the EPF account holder's personal details. By doing so, EPF account holders can ensure that their nominees receive the EPF and EPS proceeds smoothly and without any hassle.
 

Guidelines for nominating people

Nominating family members is an important aspect of an employee's financial planning. While nominating a person via EPF Form 2, an employee must consider various guidelines to ensure that their family members receive the benefits in case of any unfortunate event.

Let's take a look at the guidelines an employee must consider while nominating family members:
 

●    Employee Provident Fund Scheme

In the Employees' Provident Fund Scheme, the definition of family for a male and female employee differs slightly. A male employee can nominate his wife, dependent parents, children, and the widow of his son along with her children. In contrast, a female employee can nominate her husband, dependent parents, children, her husband's dependent parents, and the widow of her son along with her children.

●    Employee Pension Scheme

Under the Employee's Pension Scheme, an employee can nominate their spouse, minor son, unmarried daughter, and the adopted son or daughter (adopted before the death of the employee) to receive the pension benefits.
 

How to Fill e-Nomination?

If you're a member of the Employee's Provident Fund Scheme with a registered Universal Account Number (UAN), you can easily nominate your family members for EPF and EPS proceeds using the e-Nomination facility. The process is simple and can be done online through the unified EPF Member Portal. Here are the steps to fill e-Nomination:

1.    Access the EPF member portal by using your UAN and password to log in.
2.    Click on the "e-Nomination" option under the "Manage" section on the top left-hand side of the screen.
3.    Provide your permanent and current address in your profile and save the details.
4.    Choose whether or not you have any immediate family.
5.    Provide the relevant particulars of your family members, such as their Aadhaar number, name, gender, date of birth, relation to you, guardian's details (in case of minors), and address.
6.    Click on "Save Family Details" and use the "Add Row" option if you need to add more nominees.
7.    Choose the nominees from the list and enter the total amount of share you want to allocate to each nominee.
8.    Click on "Save EPF Nomination Form" to complete the process for EPF proceeds.

Please note that the procedure for availing benefits of the pension scheme under the EPS section is similar and must be followed accordingly. By completing the e-Nomination form, you can ensure that your beneficiaries will receive the benefits of your Provident Fund account in the unfortunate event of your demise.
 

Things to Remember if You are Nominating Family Members

Nominating family members for your Employees’ Provident Fund and Pension Scheme is an important decision that requires careful consideration. To ensure a smooth process and avoid any future complications, it is important to keep the following things in mind:

●    Nomination can be changed

An EPF member can change their nomination anytime they want to by filling out a new nomination form. It is advisable to review and update the nomination form at regular intervals to keep the details up to date.

●    Nomination in favor of family members

The nomination should be made in favor of one or more members of the family. If the employee has no family, they can nominate anyone as their nominee.

●    Multiple family members as nominees

In case of multiple family members being nominated, the employee must specify the percentage of the total amount to be received by each nominee.

●    Minimum service period

An employee must have a minimum of ten years of eligible service to avail of pension benefits.

●    Nomination only for family members

If the employee has family members, they cannot nominate anybody out of the family. The nominee can only be a family member as per the EPF and EPS scheme definition.
 

Documents Required

If you are nominating your family members through EPF Form 2, you do not need any additional documents. The process is simple and requires only basic information about your family members, such as their name, date of birth, and address. The EPF Form 2 is the only document you need to fill out to nominate your family members.

However, it is essential to make sure that the details you provide in the form are accurate and up-to-date. Any mistakes or discrepancies can lead to unnecessary delays or complications in the future. So, it is recommended that you double-check all the information before submitting the form.
 

Conclusion

EPF Form 2 is an important document that every employee should be aware of, as it ensures that their hard-earned savings in the EPF account are passed on to their loved ones in the event of their untimely demise. By following the guidelines and steps mentioned in this article, employees can easily fill out the e-nomination and ensure that their nominated family members receive the benefits of their EPF account. Remember, taking the time to nominate family members and updating the nomination periodically can provide peace of mind and financial security for both the employee and their family.