Your Provident Fund money is important for you in your times of need. Not only during your service period but also after it. It is also a financial security for your family in case of any untoward incident. The Employees’ Provident Fund Organisation (EPFO) also allows you to nominate a person even outside your family. But, the status changes soon after you get married.
An unmarried person has the freedom to nominate anybody for his account even outside his family, if and only if he does not have a family. On getting married i.e. on “acquiring” a family, the nomination outside family stands invalid as per the EPFO Scheme 1952. All benefits of a member’s account with the EPFO will be extended to his/her spouse and children, if any. This also includes the Employees’ Pension Scheme (EPS)
Rules of EPF-EPS nomination: Who can be the members of a family?
The law allows only family members to be nominated as nominee for any benefits. As per the scheme, for a male, the family could only be your wife and children, dependent parents, wife and children of deceased son, For a female member, it could be husband, children, dependent parents, dependent in-laws wife and children of deceased son.
Provided that where there is no major person in the family, the member may, at his discretion, appoint any other person to be a guardian of the minor nominee.
If the member has not nominated anybody, then the total amount will be distributed equally among all the family members, on his/her death. If the member is unmarried then the money will be given to dependent parents.
A nomination or its modification shall take effect to the extent that it is valid on the date on which it is received by the Commissioner.