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banu (Officer)     29 July 2011

Change of pf nominee after death of employee

Dear all,

This qn is for my friend. Her husband died recently. He worked in central govt service. in his PF nomination, the nominee was his mother. Her mother got around 20 lakh of PF amount. He has a wife & 2 children. unfortunately he never changed the nomination paper after marriage. Now his mother is not at all willing to give single paise to his wife & children. what can his wife & children do further for getting the money? pl advice.



Learning

 15 Replies

Advocate Rajkumarlaxman (Advocacy)     29 July 2011

If the nomination was done prior to marriage or after marriage is one question. if after marriage then it is somewhat difficlut i suppose but you have remedy for that also and if before marriage the nomination is done then she has to give a share in that . if not agreeing by mutual terms then the only way is to move to court immediately before she withdrawing the entire amount. file case agaisnt her claiming share in the assests he has. the PF being one of those. 

Kumar Doab (FIN)     29 July 2011

If the amount is not disbursed by the dept./authority, wife should lodge and stake her claim, under acknowledgment, being a legal heir.

Nominee is supposed to distribute the amount amongst legal heirs.

As advised by learned Mr. Rajkumarlaxman, move the court.

banu (Officer)     29 July 2011

thank u sir.

The nominations were made bef marriage. The whole amount is disbured to his mother & i feel she might have withdrawn the money also. so what is the option next. Move to court? how much % will get his legar heir?

Kumar Doab (FIN)     29 July 2011

His immediate family is spouse, children. She is class 1 legal heir. She should stake claim for herself and orphaned children. Mother may plead that she was dependant on son, but can not overrule the legal right of wife. Court shall decide

She should write to dept/authority for job on compassionate ground. She should obtain rule book from office. She should stake a claim on all terminal benefits, from all authorities, company of husband, bank, LIC etc

Banks grant insurance cover in savings a/c. Check with them.

K.S.Srinivas (Advisor (HR))     29 July 2011

As per EPF Act 1952, the amount at credit of the epf account shall be disbursed to the nominee(s) whose names are mentioned in the nomination form i.e., Form-2.


(Guest)

Only court case is the legal solution for the wife to claim her share as a Class-1 hier, as the concerned Government department was obliged only to honour the nomination made by the employee, except by the order of the court, had that been taken before disbursement of the amount to the mother.

jagadish paranjape (Advocate)     15 August 2011

When the payment is made to nominee,the responsibility of the company ceases.That does not mean that legal

rights of legal heirs are extinguished.The nominee receives the amount on behalf of all those entitled to share

according to succession law.

Therefore proper course for legal heirs would be to seek remedy in appropriate court and also seeking

injunction so that the amount is not spent.
 

Atul (office)     30 April 2016

Sir,

    what is the % should be shared among every one in case of Mother,widow & orpan child. Is father is also eligible in case of senior citizen.

Regards

AK

Kumar Doab (FIN)     30 April 2016

The successors/legal hiers are as per personal laws applicable to deceased.

If HIndu, ClassI legal hiers ( Spouse Children, mother) have equal rights.

If deceased had only 1 child and a surviving wife and a surviving mother then it is 1/3rd for each.

Sudhir Kumar, Advocate (Advocate)     01 May 2016

as per provident fund rules applicable to central govt servants :-

 

(i) the nomination made by employee prior to marrige stands invalidated and no payment can be made

(ii) husband has no jurisdiction to exclde wife from nomination

 

(iii) PF accommulations are not subject to succession law it is the property of the nominee (if nomination is valid).

 

(iv) if there is no valid nomination (as appears in this case) then payment can be made on the basis of succession certificate.

 

any officer violating these provisions is liable to lose his job.

 

your frinds seems to have allowed the things to get delayed beyond proportion and may at this stage be having no remedy.

Sudhir Kumar, Advocate (Advocate)     01 May 2016

Originally posted by : K.S.Srinivas

As per EPF Act 1952, the amount at credit of the epf account shall be disbursed to the nominee(s) whose names are mentioned in the nomination form i.e., Form-2.

EPF Act 1952 does not apply to central govt employees.  They are governed by GPF(CS) Rules framed under powers vested vide provisio to  Art 309 of the Consitutiuon read with Provident Fund Act 1925

Sudhir Kumar, Advocate (Advocate)     01 May 2016

Originally posted by : jagadish paranjape

When the payment is made to nominee,the responsibility of the company ceases.That does not mean that legal

rights of legal heirs are extinguished.The nominee receives the amount on behalf of all those entitled to share

according to succession law.

Therefore proper course for legal heirs would be to seek remedy in appropriate court and also seeking

injunction so that the amount is not spent.
 

In this case it is not a company rather deptt of govt of India

 

as poer GPF(CS) rules read with PF ACt 1925 the remittances are property of the nominee.  These rules provide that the  nomination made before marriage was no more subsisting and the payment made on the basis of same is fraud. The employee was to be treated as if dead without nomination.

Kumar Doab (FIN)     01 May 2016

The query was initiated 4 years back by querist @ banu....................and has been replied. The querist needed to Act and might have acted, since there is no more reply by querist.

 

There is another query is  by another querist @ Atul. The nominee/successor/legal hiers can share with anyone by thier aweet will including but not limited to senior citizen father.

 

Atul (office)     01 May 2016

Dear Sir,

        Thanks for your prompt reply to all. 

        From above statement, Can i take that A father has no legal rights to excercise from his Deceased son,even though he is a senior citizen & Not having any source of income in hand. Every thing will be claimed/taken by Deceased mother,wife & son. Kindly comment.


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