EPS Nomination in EPF: Rules, Benefits & How to File Online

Members of the Employees' Provident Fund Organization (EPFO) have the option to save money in pension funds through two different account types: Employee Provident Fund (EPF) and Employee Pension Scheme (EPS). After retirement, EPFO members can take their EPS and EPF withdrawals. Nonetheless, the nominee can receive the EPS benefits once they are added to the EPS and EPF accounts by the holder. Learn about the EPF's EPS nomination in this article.

Table of Content

What Is EPS In the EPFO?

Difference Between EPF And EPS Nomination

EPF Scheme Nomination Rules

Why EPS Nomination in EPFO is Important

Steps To File E-Nomination Online

Updating or Changing Nominations in EPFO

Tips for a Smooth EPS Nomination Process

Conclusion

Most Asked Questions

What Is EPS In the EPFO?

The government unveiled the Employee Pension Scheme (EPS) on November 16, 1995. Those employees for whom the company and employee make an EPF contribution are eligible for this retirement savings plan, which is applicable to all registered EPF employees. Businesses employing 20 or more workers who make more than Rs. 15,000 pay 12% of their earnings every month into the Employee Provident Fund (EPF) account. Employers and employees contribute 12% of their monthly income to the Employee Provident Fund (EPF). Employer contributions to employee EPF total 12%; 8.33% of these will go to the EPS, with the remaining portion going to the EPF. The EPS account does not receive contributions from employees. The same employee PF account receives contributions from both EPS and EPF. Employees who retire after 58 years or retire early after 50 years will get a monthly pension from the EPS amount deposited.

Difference Between EPF And EPS Nomination

A common question among EPFO members is what EPS and EPF nominations are. A person automatically becomes the nominee for EPS when they submit a nomination for the PF account using the EPFO portal. The distinction between EPS and EPF nominations is that in the former scenario, the nominee will get the pension following the member's passing, whilst in the latter case, the nominee will get the PF contribution amount as lump sum.

EPF Scheme Nomination Rules

Nominations under EPS and EPF are subject to separate regulations. According to the EPF Act, a family is:

The dependent parents, the widow of a son and children, the male employee's wife, and his offspring, whether married or not.
When a woman works, her spouse, dependent parents, children (married or not), widow of a son and children, and dependent parents of her spouse are all involved.

Similar to this, in the context of EPS, a family is the employee's spouse, any minor children they may have had, and any adopted children they may have had before their death.

Why EPS Nomination in EPFO is Important

An essential component of the EPFO structure in India is the Employees' Pension Scheme, or EPS. It offers private sector workers pension benefits upon retirement or in the case of their passing. To protect your family members' financial security, ensure your EPS nomination in EPFO is up-to-date and correct. It helps to prevent delays and legal issues in addition to guaranteeing that the pension benefits get paid to the legitimate beneficiaries. In this blog, we'll go over the specific procedures needed to finish the nomination process, stress how crucial it is to keep your nomination current and offer advice on how to make things go more smoothly. You can guarantee your family's financial future by comprehending and adhering to these methods.

EPS nomination in EPFO is essential for the following reasons:

Security of Finances: Designating family members guarantees that they will benefit monetarily from your EPS and EPF accounts regardless of your absence.
Legal Clarity: Appropriate nominations avoid family members suing each other over money distribution.
Fast Processing: Nominations guarantee that claims get handled promptly and without delays by unclear beneficiary information.

Steps To File E-Nomination Online

Go to Member Home (epfindia.gov.in), the EPF member portal, and log in. To log in, you need to enter your password and universal account number (UAN) to log in. The 12-digit UAN number gets issued by EPFO.
Under the "Manage" tab, choose e-nomination.
Select the option to "Enter new nomination."
Click the "Proceed" button once the "Provide Details" tab has appeared on the screen.
To change the family declaration, click "Yes" now.
Select "Add Family Details." If you want to add more than one nomination, click "Add now." You will need to submit the nominee's information as follows: Information such as Aadhaar, name, gender, date of birth, relationship, address, bank account information (optional), guardian (if the beneficiary is a minor), and a photo (no more than 100KB). You'll also get asked how many shares you intend to gift the nominee. Select "Save Family Details."
Declare the entire number of shares. It is necessary to consider that if there are several nominations, the overall percentage of the nominees will equal 100%. Press "Save EPF Nomination."
Go to the "Manage" tab and select the "e-nomination" option. "Pending Nomination" is displayed. To create a one-time password (OTP), click "e-sign," then send it to the Aadhaar-connected mobile number.
You will be prompted to input your Aadhaar virtual ID on a separate page.
You will see a checkbox to confirm that you agree to use your Aadhaar data for e-KYC services.
Enter your virtual ID or Aadhaar once more. Click "Get OTP" now, and the registered mobile number in the Aadhaar database get the message.
The registered mobile number mentioned in the Aadhaar database will receive the message if you click "Get OTP" right now.
You have successfully submitted your EPFO e-nomination. Recheck "E-Nomination" after selecting the "Manage" tab. The status is shown as "Nomination Successful" in the "Nomination History."

Updating or Changing Nominations in EPFO

Your nomination choices may vary as your life does. To edit or modify your nomination in EPFO, follow these steps:

Access the UAN Member Portal by logging in: Enter your UAN and password to access the EPFO member site, just like when you first submitted your nomination.
Navigate to the e-Nomination Section: Locate the "e-Nomination" area under the "Manage" menu.
Update Family Information: As needed, you can add, edit, or remove family information.
Change Nomination: Make changes to the nominations by choosing additional family members or altering the percentage of shares.
Validate and Send in: After making the required adjustments, submit the revised nomination and authenticate using your Aadhaar-linked OTP.

Tips for a Smooth EPS Nomination Process

Take into account the following advice to guarantee a smooth nomination process:

Correct Information: To prevent mistakes, double-check every piece of information before submitting.
Frequent Updates: Evaluate and revise your nominations regularly and consider any modifications to your situation.
Communicate with Nominees: Let your nominees know about their nominations and the percentage share to prevent misunderstandings later.

Conclusion

One of the most essential steps in guaranteeing your loved ones' financial stability is managing your EPS nomination in EPFO. You can quickly update and manage your nominations and give yourself and your family peace of mind by knowing how to perform EPS nominations in EPFO. In summary, maintaining current nominations is an essential component of financial planning and a legal necessity. It guarantees that the proper people receive your hard-earned savings, averting legal issues and providing your family with timely financial support. Keep your family updated on their entitlements and periodically evaluate and amend your nomination in EPFO to reflect any changes in your life.

FAQ

Q1. What does the EPS nomination mean?

EPS nomination entails designating a nominee, or the individual who will receive the EPF pension account's proceeds if the EPS account holder passes away. A member of EPS may modify their nomination under the guidelines. It implies that the candidate must be a member of the employee's family.

Q2. What is the benefit of EPF nomination?

In the event of the EPF account holder's death, the nominee or dependents (spouse, kids, and parents) can withdraw accrued money (EPF, EPS, and ELDIS) with the e-nomination.

Q3. Who can I add as a nominee for EPS?

One or more family members can be nominated by an individual. In this instance, the family consists of the husband, parents, and kids.

Q4. Is it mandatory to add a nominee for the EPS?

Members must designate their nominees when they join EPF/EPS, granting them the right to receive the PF balance owed to them and the pension benefits in the event of their death.

Q5. What happens to EPS after death?

If the worker passes away while still employed, the spouse will receive a minimum guaranteed pension of Rs 1,000 each month. According to the definition of family in EPS 95, the retirement fund is due to the husband and any children under the age of 25. Children that EPS members have lawfully adopted get included in this category.

Q6. Can I change my EPF nomination later?

You can finish the procedure by adding the new nominee's details or updating the current nominee's details. The prior nomination is invalid, and the EPFO will consider the recently added nominee or the revised information of the current nominee. The previous nomination cannot be changed or removed by a member.

Q7. How do I remove an EPS nomination?

Proceed to the e-Nominations section: Select 'e-Nomination' from the 'Manage' menu. You can add, change, or remove family information as necessary. Modify The Nomination: Change the share percentage or choose more family members to update the nominations.

Q8. How can I check my EPF nominee details online?

Enter your UAN and password to access the EPFO portal and view the EPF candidate data online. Go to 'Manage' and choose 'e-Nomination.' Check the accuracy of the EPF nominee information and amend it, storing the modifications for later use.

Q9. Can an EPF member nominate anyone if they don’t have a family member?

Anyone can get nominated if they do not have a family member.

Q10. If a previously unmarried member gets married, will the earlier nomination continue?

In that situation, they will need to submit a fresh nomination.

Q11. Who cannot join EPS?

Employees are not eligible to participate in the EPS system if their base pay exceeds Rs. 15,000.

Q12. How to check the EPS amount?

To sign in, you must access the EPFO portal and input your password and UAN. After selecting a member ID from the dropdown menu, click "view passbook."

Q13. Why is EPS nomination important for EPF subscribers?

EPS nomination ensures that pension benefits are paid to the rightful nominee in case of the member's demise. It provides financial security to dependents.

Q14. How to update EPS nomination online through the EPFO portal?

You can log in to the UAN portal, go to ‘Manage’ > ‘e-Nomination,’ and update your nominee details. Digital verification is required for final submission.

Q15. Can non-family members be nominated under EPS?

Only family members (spouse, children, dependent parents) are allowed as EPS nominees. If you’re unmarried, you can nominate anyone, but it must be updated after marriage.

Q16. What happens to EPS pension if no nomination is filed?

Without a valid nomination, pension benefits may get delayed or go unclaimed. Legal heirs will need to prove their claim, which can involve a lengthy process.

Q17. How does EPS nomination affect monthly pension after retirement?

It doesn’t affect your pension during your lifetime, but ensures your family continues to receive pension benefits (widow/child pension) after your death.

Q18. Is a separate nomination required for EPF and EPS?

Yes, EPF and EPS have separate nomination requirements. You must update both individually to avoid disputes or confusion later.

Q19. Can EPS nomination be changed after marriage or divorce?

Yes, it is essential to update your EPS nomination after marriage or divorce. Failing to do so can lead to legal complications or benefit delays.

Q20. Are minor children eligible as EPS nominees, and how is pension paid to them?

Yes, minor children can be nominated. In such cases, the pension is paid to the guardian until the child turns 25, or longer in case of a disability.

Q21. What documents are needed to complete EPS nomination online?

You’ll need Aadhaar details of the nominee, and your Aadhaar-linked mobile number for OTP-based e-signature. No physical document submission is needed.

Q23. Can EPS nominee claim pension benefits if the member dies before 10 years of service?

Yes, family pension is still provided if the member was eligible and contributed to EPS. The minimum 10-year rule applies only for self-pension after retirement.

Q24. How is EPS nominee different from EPF nominee in case of death benefits?

EPS nominee gets monthly pension benefits, while EPF nominee receives a lump sum of accumulated funds. Both serve different purposes under the EPF scheme.

Q25. Does having multiple EPS nominations impact pension disbursal?

Only one valid nomination is recognized in EPS. If multiple nominations exist, EPFO considers the latest valid nomination at the time of claim.

Q26. How to check if EPS nomination is successfully registered with EPFO?

Log in to the UAN portal, navigate to the ‘Profile’ or ‘e-Nomination’ section to verify your EPS nomination status and download a copy.

Q27. Is there a deadline for updating EPS nomination to avoid pension issues?

Though there's no fixed deadline, EPFO strongly recommends updating nominations regularly. Delay could result in claim issues during emergencies.

Q28. How does EPS nomination integrate with retirement tax planning or pension funds?

EPS benefits are tax-free and provide a fixed pension post-retirement. Including EPS in your overall retirement planning helps ensure predictable income along with PPF, NPS, and 80C options.

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