Understanding EPF Form 2: Nomination and Declaration for Your Employee Provident Fund
Understanding EPF Form 2: Nomination and Declaration for Your Employee Provident Fund
The Employees' Provident Fund (EPF) is a social security scheme in India that helps employees save for their retirement. Every enrolled member contributes a portion of their salary towards the scheme, with their employer matching the contribution. To ensure these accumulated funds reach the right hands in case of the member's passing, a nomination process is crucial. This is where EPF Form 2 comes in.
What is EPF Form 2?
EPF Form 2 is a declaration and nomination form used by employees to designate beneficiaries for their EPF account. By filling and submitting this form, you authorize specific individuals to receive the funds in your EPF account if you pass away before retirement.
Who Needs to Fill EPF Form 2?
Every employee enrolled in the EPF scheme is required to complete and submit EPF Form 2. This includes both new and existing members. It's advisable to submit the form as soon as you join the scheme to ensure your loved ones are protected.
Key Points About EPF Form 2
- Purpose: The primary purpose of EPF Form 2 is to nominate beneficiaries for your Employees' Provident Fund (EPF) account. This form allows you to designate specific individuals who will receive the accumulated funds in your EPF account if you pass away before retirement. By completing this form, you can ensure your loved ones have financial support during a difficult time.
- Completion: The EPF scheme offers convenience when it comes to submitting your nomination. You can do it either online or offline.
- Updates: Update your nomination after significant events like marriage, birth of a child, or the passing away of a previously nominated beneficiary.
- Approval: No approval is required from the employer or the PF commissioner.
- Documents: Fill out the form accurately.; no further documents required.
Structure of EPF Form 2
The form is divided into four sections:
- General Information: This section collects your basic details like name, father's/husband's name, date of birth, address, and EPF/EPS joining date.
- Part A (EPF Proceeds): Here, you provide details about your nominees for the EPF corpus. This includes their names, addresses, relationship with you, date of birth, and the share percentage allocated to each nominee. If a nominee is a minor, you'll need to mention the guardian's details as well.
- Part B (EPS Proceeds): This section deals with the Employees' Pension Scheme (EPS) portion of your contribution. You'll need to specify the family members eligible to receive the pension after your demise. This typically includes your spouse, minor children, or dependent parents.
- Certificate by the Employer: Your employer verifies the information you've provided and adds their organization's details and stamp.
Nominating Your Family Members
- Married Employees: You can nominate your spouse, dependent parents, children, or the widow and children of a deceased son.
- Unmarried Employees: You can nominate any individual(s) you wish.
Guidelines for Nomination
· You can nominate one or more family members.
· If you have a family, the nomination must be in their favor (unless there are no dependents).
· You can specify the share percentage for each nominee if there are multiple.
· You can update your nomination as many times as needed.
How to File Your Nomination
- Online (e-Nomination): This is the preferred method. You can do it through the Unified EPF Member Portal if you have an activated UAN.
- Offline: Download the form, fill it out, and submit it to your employer.
Things to Remember
· There's no limit to the number of times you can update your nomination.
· You can nominate anyone if you have no family.