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PPF accounts are governed by the Public Provident Fund Scheme 2019. Nomination is permitted under paragraph 12 of the scheme.
On death of the PPF account holder, the balance passes to the nominee. Where no nominee is named, the balance passes to legal heirs.
The Sarbati Devi doctrine applies to PPF nominees for succession purposes — the nominee holds in trust for legal heirs unless the nominee is themselves a legal heir.
For PPF accounts with substantial balances (10+ years of contributions), succession value can be substantial — often ₹15-30 lakh at maturity for maxed-out annual contributions.
On death, the PPF account is closed and the balance is paid to the nominee/heirs. Continuing the account after the account holder's death is not permitted.
EPF is governed by the Employees' Provident Fund and Miscellaneous Provisions Act 1952. Nomination is under Form 2.
On death of the EPF member, the accumulated corpus (employee contribution + employer contribution + interest) plus the Employees' Pension Scheme (EPS) pension is payable to the nominee and family.
EPF has 'family definition' under paragraph 34 of the scheme — a nomination in favour of a person outside the defined family is void if a family member exists at the time of death.
'Family' includes: wife or husband, children (natural or adopted), dependent parents. If any family member exists, nomination outside the family is void.
This is an important restriction. An EPF nomination to a friend or non-family member is void if the member has a spouse, child, or dependent parent.
EPS is a defined-benefit pension component within EPF. On death of an EPS member, a monthly widow's pension or family pension is payable.
Widow's pension: payable to the widow for life. If she remarries, the pension may cease under some interpretations.
Children's pension: payable to two children under 25 or until they attain 25 whichever is earlier.
The pension amounts are calculated per EPS formulas based on service years and last-drawn wages.
For substantial EPF corpus with EPS, the total value to survivors can be substantial. Explore this properly during estate planning.
NPS is governed by the PFRDA Act 2013 and PFRDA (Exits and Withdrawals under NPS) Regulations 2015.
NPS Tier-I accounts have specific nomination provisions. On death of the subscriber, the accumulated corpus is payable per the nomination.
Two options for the nominee:
Lump-sum payment of entire corpus (default option).
Purchase of an annuity from an insurance company, with periodic pension payments to the nominee.
For substantial NPS corpus (10+ years of contributions), the annuity option provides retirement income for the nominee — often the surviving spouse.
Post-2019 rules allow the nominee to withdraw the entire corpus without annuity purchase for smaller amounts. Threshold varies.
For PPF: nominee holds in trust for legal heirs per Sarbati Devi (unless nominee is a beneficial nominee under Section 39 Insurance Act analogy — this is legally uncertain). Will controls ultimate distribution.
For EPF: nomination in favour of family members is dispositive. Nomination outside family is void where family exists. Will does not override this restriction.
For NPS: nomination is dispositive. Will typically does not override.
Practical planning: ensure nominations on PPF, EPF, and NPS all reflect your current wishes. Coordinate with your Will's provisions.
Death certificate.
Copy of the deceased's Will (or Succession Certificate / LoA if intestate).
Nomination form on file with the fund administrator.
Identity proof of the claimant nominee.
Bank details for transfer of funds.
KYC completion for nominee (PAN, address proof).
Family tree affidavit if no valid nomination exists.
Processing time varies: PPF 30-60 days; EPF 60-90 days; NPS 45-90 days.
Forgetting to update nominations after major life events (marriage, divorce, death of a nominee, birth of children).
Naming minors as nominees without guardian directions.
Assuming nomination is beneficial ownership — often it is not.
Failing to consolidate multiple EPF accounts from job changes — each employer opens a fresh EPF membership if not properly transferred.
Not knowing about the NPS annuity option and defaulting to lump-sum when structured pension would better serve the surviving spouse.
Do a retirement-fund audit annually:
List all PPF accounts (yours, spouse's, children's).
List all EPF accounts (yours across all employers, spouse's).
List NPS accounts.
For each, confirm current balance, nomination, and family situation match your intentions.
Consolidate where possible — transfer EPF balances from prior employers into current employer's EPF. Reduce administrative complexity for your heirs.
Retirement funds — PPF, EPF, NPS — combine to substantial value for most working Indians. Their succession is not automatic; it depends on nominations that must be actively maintained and that interact with your Will in specific ways.
For substantial retirement fund balances, review nominations and coordinate with your Will as part of estate planning.
This is general legal information, not legal advice. For your specific situation, consult a Law Tarazoo advocate.
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