The Employees' Provident Fund Organisation (EPFO) has issued a clarification on handling inoperative accounts if a member passes away. The organisation is responsible for managing provident fund savings and pensions of employees in India.
In a post on X, the EPFO explained what happens to such inoperative accounts and what their family members can do.
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“If a member passes away while in service, the EPF account becomes inoperative after three years from the date of death,” it said. This means if an employee dies while still employed, their EPF account ceases to be active after a certain period.
After retirement or death, the EPF account can continue earning interest till three years. If there is no activity or claim during these three years, then the account is marked inoperative by the organisation. It then stops earning interest and can lead to financial losses.
As a result, the EPFO advises that family members and legal heirs of the EPF subscriber file timely claims to settle the account. They should submit required documents and complete the process for easy access to PF and pension funds.
Which EPFO Forms Are Needed?
In case of the death of the member, their family or nominees must submit required documents at the EPFO office where the deceased was registered. But the types of documents can vary depending on the age and service period of the deceased member.
1. If an EPF member dies while in service, the nominee, beneficiary, or legal heir can apply for benefits using Form 20 for final EPF settlement, Form 10D for monthly pension, and Form 5IF for EDLI insurance. This applies whether the death occurs before age 58 or after age 58, provided the member has completed 10 years of eligible service in the latter case.
2. If an EPF member dies while in service and has not completed 10 years of eligible service, Form 20 and Form F are a standard requirement. But pension withdrawal is claimed through Composite Claim Form (Aadhaar or Non-Aadhaar).
3. If an EPF member dies before or after 58 years, but were away from service, the nominee, beneficiary, or legal heir can apply for final PF settlement through Form 20 and pension through Form 10D.
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