Steps to add a Nominee to Provident Fund Account

Investment and savings instruments like mutual funds, bank savings accounts, provident fund accounts, etc., allow the owner the option to add a nominee. In the unfortunate event of the owner’s demise, the nominee gets ownership of the account and its funds. Adding a nominee can help investors secure their loved ones financially and cater to their monetary needs.

This article mentions the steps to add a nominee to a provident fund account in view of the latest guidelines. Read on to know more.

Why do all account owners need to add a nominee?

As per the latest guidelines of the Employees’ Provident Fund Organization (EPFO), all account holders have to mandatorily add a nominee by December 31, 2021. If the account owner fails to add a nominee, all benefits, including insurance and pension, may be lost.

How to add a nominee?

Account owners can add a nominee online by visiting the EPFO website. The account does not need anyone else’s approval to add a nominee in the online method. Earlier, nominations had to be added offline by the employer on Form 2. This form was then submitted to the EPFO.

What are the steps to add a nominee online?

Here are the steps to add a nominee:

• Go to the official EPFO website: epfindia.gov.in
• Go to the “Services tab”
• Select “For Employees”
• Click on “Member Universal Account Number” (UAN) or “Online Service” (OCS/OTCP)
• Enter the UAN and Password to log in
• Click on “Manage”
• Select “E-nomination”
• Click “Yes”
• Update the new nominee under “Add Family Details”
• Click on “Nomination Details” and add the share of the nominee. If you have added more than one nominee, you can mention the share of each individual
• Go through the changes made and click on “Save EPF Nomination”
• Click on “E-sign” to validate the changes. An OTP will be sent to the registered mobile number under UIDAI (Unique Identification Authority of India)
• Enter the OTP
• The nomination will be updated on the system

Importance of adding a nomination

Adding a nominee can be important for several reasons. Some of these have been mentioned below:

• The nominee stays financially secure in the absence of the account owner.
• Adding a nominee is also essential for other investments like mutual funds, National Pension Scheme (NPS), etc.
• In case of the demise of the nominee, it is vital to change the nominee and add a new one.
• If any change in relationship dynamics, marital status, etc., changing the nominee ensures that the rightful heir gets the funds. For instance, it may be advised to change the nominee in case of a divorce or remarriage. This ensures there are no feuds or legal hassles for the family members later.

To sum it up

In addition to PF, investors must also check all their other investments and update the nominations there as well.

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