EPFO Update: New rule simplifies EPF death claim process. Check details

The Employees' Provident Fund Organisation (EPFO) has announced some concessions for processing physical claims of dead claimants who didn't have their Aadhaar seeded with their accounts. The May 17 circular amended its previous order on September 9, 2020, regarding claim settlement in the absence of the Universal Account Number (UAN) in the case of an employee’s death.

The EPFO has said its field offices were facing difficulties in updating or rectifying Aadhaar details after the death of its members.

Hence, the EPFO decided to process claims in such cases without the seeding of Aadhar details, allowing easier access to EPF benefits for the families of deceased members.

“However, this concession is contingent upon obtaining approval from the Officer in Charge (OIC) via an e-office file. The file must meticulously document the verification procedures undertaken to authenticate the deceased's membership and the legitimacy of the claimants. This protocol is to be executed in conjunction with additional due diligence measures, as directed by the OIC, to mitigate the risk of fraudulent withdrawals," said EPFO in a circular released on May 17, 2024.

The relaxation of Aadhaar requirement applies when UAN details are correct but incomplete in UID database. This allows smoother processes for members with accurate UAN data. 

EPFO said: “In cases where Aadhaar data is correct but inaccurate or incomplete in the UAN, field offices must meticulously follow the guidelines delineated in Paragraphs 6.9 and 6.10 of JD SOP version-2 dated 26.03.2024. This involves rectifying the data in the UAN, seeding, and validating/authenticating the Aadhaar, in alignment with the instructions outlined in the prior Circular dated 24.09.2020.”

Issues raised

> Lack of Aadhaar information for cases before its implementation.

> Deactivated Aadhaar accounts.

> Technical problems in validating Aadhaar through the UIDAI database.

> These issues have prevented field officers from processing claims, leading to delays in paying affected claimants, EPFO said.

How claims will be processed

> Temporary allowance for physical claims will be given to those without Aadhaar seeding in death cases.

> Approval is required from the Officer In Charge (OIC) via an e-office file.

> Detailed verification necessary to confirm deceased membership and claimant authenticity.

> Due diligence actions directed by OIC to prevent fraudulent withdrawals

The EPFO said: "As per the JD SOP version-2 dated 26.03.2024, in case of the death of a member without an Aadhaar, then the nominee’s Aadhaar will be saved in the system, and the nominee may be allowed to sign the JD form. Other processes will remain the same. There may be cases where the deceased member has not filed a nomination during his lifetime. In the absence of a valid nomination, one of the family members/legal heirs of the member may be allowed to attest the JD and submit his/her Aadhaar with the consent of other family members/legal heirs.”

EPF is a retirement savings scheme where both the employee and employer contribute equally monthly. A part goes to the mandatory Employee Pension Scheme (EPS), paid post-retirement. Partial withdrawals are allowed for emergencies, while full withdrawal is possible during retirement or after two months of unemployment.