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Transfer of Accounts after the death of member for calculation of Assurance  Benefit under EDLI Scheme, 1976: EPFO

Good Move by the EPFO regarding the EDLI Scheme. Focusing on verifying previous memberships and facilitating PF account transfers after a member’s passing demonstrates a commitment to fairness and the well-being of employees and their families.

Employees’ Provident Fund Organization (EPFO) addresses concerns regarding the calculation of Assurance Benefit under the Employees’ Deposit Linked Insurance (EDLI) Scheme after the death of a member. Let’s break down the key points:

  1. Background:
    • The EPFO has observed instances where beneficiaries receive insufficient amounts in the settlement of EDLI claims for deceased members.
    • The issue arises when deceased members have multiple Provident Fund (PF) accounts linked to their Universal Account Number (UAN).
  2. Verification of Previous Memberships:
    • To address this, the EPFO emphasizes the need for verification of previous PF accounts linked to a UAN.
    • Manual verification from the Management Information System (MIS) is crucial before settling death claims.
    • The document refers to the Manual of Accounting Procedure, specifying the procedure for the transfer of accounts after the death of a member.
  3. Transfer of Accounts:
    • The Manual suggests that if a PF account hasn’t been transferred during the member’s lifetime due to various reasons, the Regional Provident Fund Commissioner may facilitate the transfer without insisting on a transfer application.
  4. Importance of Previous Membership Transfer:
    • Referring to an EDLI Scheme amendment, the document highlights that continuous services of 12 months with two different establishments will count for calculating EDLI benefits.
    • However, this is only possible when the previous membership of the deceased worker is transferred to the current PF account.
  5. Directive for Verification:
    • The document directs officials to ensure that service records under different Member IDs (MIDs) have been transferred and considered in the calculation of payable benefits.
    • Special attention is required in cases where the payable benefit is less than the minimum assurance benefit of 2.5 Lakhs.
  6. Coverage Status Check:
    • Officials are instructed to check the coverage status of the concerned establishment/employer under the EPF & MP Act, 1952.
    • Any discrepancy in the date of coverage should be investigated.
  7. Conclusion:
    • The document was issued with the approval of the Central Provident Fund Commissioner (CPFC).
    • It stresses the importance of meticulous verification to avoid depriving the deceased worker’s family of eligible EDLI benefits.

In essence, this communication underscores the significance of accurately transferring and consolidating previous PF memberships to ensure that the calculation of benefits under the EDLI Scheme is carried out correctly for the beneficiaries of deceased members.

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