There is a simple way to sidestep a problem that has a way of showing up: stale or non-existent nominations. They have a habit of holding up payouts right when a family is in a bind. Since the EPFO is crediting 8.25% this quarter on both EPF and voluntary contributions, making sure the correct person is on file is as much about protecting your money as it is about following procedure.
Why this matters for EPF investors
A nomination is what tells the system who is to be made whole with EPF, Pension (EPS) and Insurance (EDLI) should something happen to a member. The e-nomination and e-sign route from the EPFO is a good way to stay out of legal tangles and cut down on red tape, provided the information is sound.
If you ask the experts, they will tell you that being current with your paperwork is the only way to spare your dependants from the kind of hold-ups and hassles you don’t need.
What to have ready before you e-nominate
The EPFO portal is available to anyone with a UAN tied to their Aadhaar. But don’t just log in unprepared; get what you need together so you can put your e-sign on it without starting over.
For every nominee, you’ll want these on hand:
– Full name and Aadhaar
– DOB and gender
– Where they live and how they’re related to you
– Bank info, if you like
– A guardian’s particulars, in case of a minor
– A photo (100KB max)
You also have to put some thought into the split. More than one nominee? Make sure the numbers come to 100%.
e-Sign via Aadhaar or a 16-digit VID
The digital side of things with the EPFO comes down to an e-sign. You can put your stamp on it with either the Aadhaar number or a 16-digit Virtual ID from UIDAI. After you put in the particulars, an OTP goes to the mobile on file for you to confirm.
Some members don’t like to put their Aadhaar number in during the process. EPFO says you are fine to use the 16-digit Virtual ID for the e-sign instead.
Who can do it online and what else is there
If you have a UAN that has been verified with Aadhaar, you can put in or change a nomination on the member portal. It’s the way to add a new name or cross off an old one once you’ve e-signed.
Not for the online world? You can always turn in a Form No. 2. It covers all the bases for the EPF, the Employees’ Pension Scheme and the Deposit Linked Insurance.
Investor lens: risks, opportunities and next steps
In the end, a proper e-signed nomination is what stands between a smooth settlement and a long wait. It is the mechanism by which your EPF, EPS and EDLI savings get to the people you have in mind, with no legal head-winds, per the EPFO.
When you are in the business of building for retirement, an 8.25% return is worth some administrative housekeeping. E-nominating is an easy task to ensure that return is safe for those who count on you.
Time to make a change?
Circumstances have a way of rendering an old nomination useless. The EPFO is on record saying you should update your file to make sure the right party is in line for their dues.
Here is a handy list to go by:
– Tying the knot or parting ways
– A new child or an adoption
– If a nominee has passed on
Making it happen
First thing is to be sure your UAN is in order with Aadhaar. Then put the 100KB photo and the rest of the data in a pile. If you have a few nominees, work out the percentages ahead of time.
When you are in the system, you can vouch for your identity with the Aadhaar or the 16-digit ID. An OTP will be sent to your phone to wrap up the e-sign and make it official.
The bottom line for EPF members
The EPFO has put the power in the hands of its verified members to handle nominations in a matter of minutes, though Form No. 2 is still on the table for those who want it. The message is plain: take care of your nominee info, put your e-sign to it, and you will be doing your family a favour by not letting them deal with unnecessary red tape down the road.
