EPFO Rule Change: After the death of an Employees Provident Fund Organisation (EPFO) member, the fund money will be deposited directly into the bank accounts of their children.
EPFO Rule Change 2025: The Employees Provident Fund Organization has given a big relief to its lakhs of members and their families. EPFO has abolished the requirement of guardianship certificate for PF claim to minor children. In such a situation, now after the death of an EPF member, the fund money will be deposited directly into the bank account of their children. For this, there is no need to get entangled in a long legal process.
This was the rule earlier
Under the earlier rule, if the minor children of the deceased PF member had to get the money, then the family had to bring a guardianship certificate from the court or government authority. This certificate proved who was responsible for the care of the child and his property or money. Many times it took weeks to months to get it made, which delayed the amount received by the family.
Now the fund will be transferred directly to the children’s account. The Employees’ Provident Fund Organization (EPFO) issued a circular on Wednesday stating that many regional offices used to ask for this certificate even in cases where it was not legally required. Due to this, the family members of the deceased member had to face problems and there was delay in claim settlement. Keeping this in mind, a new rule has been brought. Under this rule, the fund money will be transferred directly to the personal bank account of minor children, which will eliminate the need for guardianship certificate.
It is important to have a bank account in the name of children
EPFO has advised all people to open a personal bank account for minor children in time. This will not only transfer the PF claim amount directly to their account, but family pension and other benefits will also be deposited directly into the account. To open a bank account, the parents or guardians will have to provide the child’s identity card and necessary documents. The guardians will operate the account until the child becomes an adult.
Many benefits are available after the death of a PF member
Let us tell you that after the death of an EPFO member, his family gets many types of financial assistance. This includes family pension, EDLI insurance. Under family pension, the family of the deceased member is given pension every month. This remains applicable during service or even after retirement. On the other hand, under the EDLI insurance scheme, if an employee dies during service, the nominee gets a lump sum insurance amount.
