What Is EPS Nomination And How To Do It?

The Employees’ Provident Fund Organisation (EPFO) members can save money in pension funds with two types of accounts, i.e. Employee Pension Scheme (EPS) and Employee Provident Fund (EPF). EPFO members can withdraw their EPF and EPS amounts after retirement. However, when a nomination is added for the EPS and EPF account, the nominee is entitled to receive the EPS benefits. Find out what EPS nomination is in EPF.

What Is EPS In EPFO?

The government introduced the Employee Pension Scheme (EPS) on 16 November 1995. It is a retirement savings plan that applies to all registered EPF employees but only to those employees for whom the employer and employee make an EPF contribution.

Establishments with 20 or more employees earning more than Rs.15,000 per month should mandatorily contribute 12% of the employee’s salaries to the EPF account. Both employers and employees contribute 12% of their monthly salary towards EPF.

Out of the 12% contribution made by the employer towards EPF of employees, 8.33% will be contributed to the EPS and the rest will be contributed towards EPF. Employees do not contribute to the EPS account. Both EPS and EPF contributions are made to the same employee PF account. Employees will get a monthly pension from the deposited EPS amount when they retire after attaining 58 years or after completing 50 years when they retire early.

What Is EPS Nomination?

All PF account holders are eligible to receive EPS as a pension every month after retirement. However, upon the member’s death, the nominee will be eligible to receive the member’s pension funds. Since all employees enrolled in the EPF scheme are automatically enrolled in the EPS scheme, the nominee for the PF account will receive the EPS amount. EPS nomination can be made online by logging into the EPFO website using the employee’s Universal Account Number (UAN). 

Difference Between EPF And EPS Nomination

EPFO members often wonder what EPS and EPF nominations are. When a nomination is made in the EPFO portal for the PF account, that person automatically becomes the nominee for EPS as well.

However, the difference between EPF and EPS nomination is that in the case of EPF amount, the nominee will receive the lump sum PF contribution amount after the member’s death, however in the case of EPS, the nominee will get the pension after the member’s death.

How To Add EPS Nomination In EPF?

Below are the steps to add EPS nomination in EPF:

Step 1: Visit the EPFO Member e-Sewa Portal.

Step 2: Enter the UAN and password and click the ‘Sign in’ button.

Step 3: Under the ‘Manage’ tab, select the ‘E-nomination’ option.

Step 4: Click the ‘Enter new nomination’ on the next page.

Step 5: The member’s profile details will appear. Click on the ‘Proceed’ button.

Step 6: Select ‘Yes’ under the ‘Family Declaration’ section to add a new nominee or update the details of the previously existing nominee. 

Step 7: Enter nominee details, upload the nominee’s photo, and click on the ‘Save Family Details’ button. When more than one nominee needs to be added, click on the ‘Add now’ button and enter the nominee’s details.

Step 8: Add ‘Total amount of shares’ and click the ‘Save EPF Nomination’ button.

Step 9: Under the ‘Pending Nomination’ section, click the ‘e-Sign’ option.

Step 10: Click the ‘Proceed’ button on the dialogue box.

Step 11: Enter the Aadhaar virtual ID and click ‘Verify’.

Step 12: Select the box to consent for e-KYC services data from Aadhaar.

Step 13: Enter the Aadhaar or Virtual ID and click the ‘Get OTP’ button. Enter the OTP sent to the mobile number, select the check box to give consent and click on the ‘Submit’ button.

Step 14: The nominees are registered with the EPFO. The ‘Nomination History’ can be seen under the ‘Manage’ tab by clicking on the ‘E-nomination’ option. 

Note: Family includes only the parents, spouse and children. Thus, when a member wants to add siblings as nominees, he/she should choose the ‘No’ option under the ‘Having Family’ section.

The pensioner can easily add nominations for the EPS Online. Since all EPF members will receive EPS, nominees added to the EPF account will automatically receive the EPS pension also after the death of the EPF account holder. Thus, if a nomination is already made for an EPF account, there is no need to add a nominee for EPS separately.

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