EPFO Rules: Today, millions of workers across the nation set aside a part of their salary into the Provident Fund (PF) to ensure their future security. However, many individuals overlook a crucial step after opening a PF account: completing or updating EPFO Form-2. According to the Employees’ Provident Fund Organisation (EPFO), Form-2 serves as a nomination and family declaration form. This form allows an employee to designate who will receive the PF, pension, and insurance benefits in the event of their passing.
What is EPFO Form-2?
Form-2 is known as the Nomination and Declaration Form. Through this document, the employee selects a nominee for the PF (Provident Fund) and provides family details for the EPS (Employee Pension Scheme). Additionally, it designates the beneficiary for the EDLI insurance. Essentially, this single form registers nominations for three significant benefits.
What is the advantage of completing Form-2?
When the correct nomination is established in the EPF account, the claims process becomes much simpler for the family following the employee’s death.
Key benefits to understand:
– The transfer of the PF amount to the nominee can be expedited.
– Family information is already recorded for the EPS pension.
– The EDLI insurance claim process is streamlined.
– Without a nomination, additional documents may be required to establish legal heirship.
What is EDLI insurance?
Employees enrolled in the EPFO are eligible for the EDLI (Employees’ Deposit Linked Insurance) benefit. In the unfortunate event of an employee’s death, their nominee or family can claim a maximum insurance benefit of up to Rs 7 lakh. This is indeed a life insurance coverage; it extends beyond just accidents.
Who can be a nominee?
According to EPFO regulations, if the employee is married, the nominee should typically be a family member:
– husband or wife
– children
– dependent parents
If the employee is unmarried, they can choose any individual as a nominee. It is essential to update the nomination after marriage.
How many nominees can be made?
The employee can also make more than one nominee and decide the share among them.
Example:
Wife – 50%
Child – 25%
Second child – 25%
This reduces the chances of dispute in the future
How to fill Form-2?
1. Login to the UAN portal
2. Go to the Manage tab
3. Select the E-Nomination option
4. Fill in the details of family members
5. Decide the share
6. Do Aadhaar based e-Sign
After this the nomination gets updated online.
