vinay kumar (News reporter) 14 June 2012

Withdrawl of pf/pension of deceased unmarried son by mother

Dear Friends & Esteemed Learned Colleagues,

Thanks for Sharing Valuable information with people who need them.
One of My close friend who was working with an MNC in NCR for about 20 months expired 2 months back due to illness.His brother is a nominee in his PF A/C etc.Earlier the deceased had worked in bangalore for about 3 years & he could not transfer his PF Funds from Bangalore to his New PF Account opened in Delhi.
On enquiry we found that His brother is a nominee in PF Accounts at Bangalore too. As per PF Laws,A BROTHER CANNOT BE MADE A NOMINEE IN PF ACCOUNTS
The problem comes with PF Withdrawl,EDLI & Pension payment.Since,he is not eligible & the Mother to deceased being only Class I legal Heir has sole right for same.
Th questions being:
1-How the Mother to deceased may claim for PF/EDLI/PENSION of her SON

2-IF she should withdraw PF & EDLI from Delhi & Withdraw PF from Bangalore & request for Transfer of EPS Amount from Bangalore to Delhi..

3-If she should claim & withdraw pension from Both places separately ie Bangalore(worked 3 years) & Delhi(worked 20 months)

4- If by Transferring EPS Amount to Delhi,will she get higher pension than she would be getting separately

5-If She Expires,then Will the EPS be Transferred in Name of her Husband

6-What pension she would be getting as the Last drwan salary of her Son

Please Guide which is the legal way to be adopted.

Thanks in Advance for bearing with us
Vinay Kumar

Reply Follow

1 Replies

Uttam Maheshwari (Associate) 26 June 2012

Dear Shri Vinay,

This peculiar situation would be governed as per the provisions contained in Employees' Provident Fund Scheme, 1952 and Employees' Pension Scheme, 1995. As you have very clearly laid down the problem, following are the advises:

1. Since mother is neither the nominee nor falls within the definition of family under the EPS, 1995, therefore, mother would be required to file a case of succession under the Indian Succession Act, impleading the companies in which her deceased son worked, PF authorities of Delhi & Bangalore as well as her son (who is registered nominee). Generally, these cases are decided within few months, and the PF authorities do not raise any objections. Even though brother (being registered nominee) is also entitled for pension under Para 16(5)(a) of EPS, 1995.

2. Transfer & accumulation of provident fund at Delhi would be advisable. This would increase the quantum of provident fund pension.

3. After obtaining the decree of succession in the name of mother & father jointly, they should apply for transfer of funds. After transfer, they should apply for release of pension in the name of mother.

4. After trasmission of funds, mother would get the accumulated amount of pension, which would be higher then combined pension amount as now son would have a higher pensionable service.

5. If the succession is obtained in name of mother & father right now, then, it would be more appropriate.

6. Amount of pension would be determined as per Table C of EPS, 1995

Best,

Uttam Maheshwari,

Advocate