What happens to your EPS pension if you die before turning 58?

So, if something happens to you before you turn 58, what exactly can your spouse, children, or nominees claim? 

Here is a simple look at the EPS family pension rules, along with EPF and EDLI benefits your family may be entitled to.

EPFO family pension guide: Eligibility, minimum pension and benefits 

EPFO ensures that the deceased member’s dependents continue to receive financial support through multiple pension categories. 

In case the employee died after completing 10 years of service:

• The spouse of the deceased is entitled to a widow or widower pension of 50% of the employee’s pension at age 58, which is paid for life or until remarriage, with a guaranteed minimum of Rs 1,000 per month. 
• In addition, up to two children receive a child pension of 25% of the widow’s pension each, until they turn 25 years of age. 
• For disabled children, this pension continues for their entire lifetime. If both parents are deceased, the orphan pension kicks in at 75% of the widow’s pension per child. 

In case the employee died before 10 years of service:

• If the employee passed away before meeting the 10-year service threshold, the family is not eligible for a monthly pension. 
• Instead, they are entitled to either a withdrawal benefit based on the member’s wages and length of service or, in cases where there is no eligible family member at all, the pension is paid to a nominated person or to the member’s dependent parents.

Additional benefits:

• Apart from the normal pension, the nominee is legally entitled to receive the EPF accumulation, which is the total amount accumulated in the active Provident Fund account of the employee, along with the interest. 
• In addition to the pension, if the employee dies in service, the family also gets a lump sum amount of a minimum of Rs 2.5 lakh and a maximum of up to Rs 7 lakh as per the new amendments under the Employees’ Deposit Linked Insurance (EDLI) scheme.
• The family or nominee has to submit Forms 10-D (for the EPS pension) and 20 (for the EPF withdrawal) to the employer of the deceased employee to claim these benefits. These forms are then processed in the EPFO’s Unified Member Portal.

Documents required

In case of the death of an employee before the age of 58, the family or nominee has to submit certain documents to the Employees’ Provident Fund Organisation (EPFO) to claim the benefits under the Employees’ Pension Scheme (EPS). Death Cases are typically combined with the Composite Claim Form with Form 10-D (or Form 10-C if less than 10 years of service), along with: 

• Original death certificate
• Aadhaar cards
• PAN card
• Bank account details
• Family member certificate / Legal heir certificate
• Age proof for children
• Guardianship certificate
• Passport-sized photographs
• Descriptive roll form
• Service certificates / EPF passbook
• EPFO scheme certificate

How to apply?

To claim Employees’ Pension Scheme (EPS) benefits after the death of an employee, the registered beneficiary or nominee can opt for an online or offline application process. 

Online process:

• Visit the EPFO Unified Member Portal Login portal and click on the “Death Claim by Beneficiary” link.
• Now enter the deceased member’s Universal Account Number (UAN) along with the beneficiary’s Aadhaar card number, name, and date of birth.
• Now verify the mobile number linked to the beneficiary’s Aadhaar. 
• Complete the required online fields and submit the application by uploading the supporting documents, such as the death certificate, canceled cheque, and age proofs under 2 MB each.

Offline process:

• The nominee must first download the physical copies of the Composite Claim Form in Death Cases and complete the form fields, selecting both Pension (Form 10D) and Provident Fund (Form 20).
• Get the employer’s attestation by submitting the filed documents to the deceased employee’s last corporate establishment.
• The death claim will be approved by the EPFO within 7 to 30 days after the applications are submitted to the designated Regional EPFO office with hard copies of all necessary documents. 
• The nominee of the deceased person can check the active status of the application under the “Know Your Claim Status” on the EPFO portal or by texting “EPFOHO [UAN] ENG” to 7738299899.

Key takeaways

Moreover, the benefit starts immediately from the date of the member’s demise. The wife does not need to reach her ‘virtual retirement age’ of 58. Out of the 12% contribution made by the employer to EPF, 8.33% is credited to the EPS account. The upper limit on the basic salary for EPS calculation is Rs 15,000 per month. Hence, Rs 1,250 is put towards the pension fund by the member every month.

“It is often surprising for the majority of the salaried employees that this scheme is much more than a simple retirement pension plan and is actually meant to take care of unforeseen circumstances. Therefore, families should always keep updated nomination details, Aadhaar linkage, bank account details, and EPS,” said Chakravarthy V., Co-founder & Executive Director, Prime Wealth Finserv.

It is very clear why members need to update their nominations and work records on a continuous basis. Neglecting to update the document may result in a delay in the payment to the member’s family in their time of need. Members need to ensure they are in the EPS and EPF to consistently ensure their family’s needs are taken care of when they are no longer alive.

Disclaimer:

This article is meant for informational purposes only and should not be considered legal, financial, tax, or investment advice. EPFO, EPS, EPF, and EDLI rules are subject to amendments by the Employees’ Provident Fund Organisation and the Government of India from time to time. Pension eligibility, benefit amounts, and claim procedures may vary depending on individual employment history, service tenure, contribution records, and nominee details. Readers are advised to verify the latest rules and consult the official EPFO website or a qualified financial/legal advisor before making any claim-related decisions.