The Employees’ Provident Fund Organisation (EPFO) has issued a notification to simplify and expedite the settlement of death claims in cases where the surviving beneficiaries are minor children of a deceased member.
The latest directive, issued in August 2025, specifically addresses unnecessary delays caused by the insistence on Guardianship Certificates, which were being demanded by several EPFO offices before releasing benefits to minors.
🔍 What Has Changed:
EPFO has now clarified that:
- No separate Guardianship Certificate is required if the settlement amount is being directly credited to a bank account in the name of the minor child.
- This applies to all types of settlements, including provident fund claims, insurance benefits, and pension entitlements payable after the death of a member.
🏦 Instructions to Claimants:
- Claimants (typically surviving parents or legal guardians) are to be guided to open individual bank accounts in the names of each minor child.
- Once these accounts are opened, the EPFO will directly credit the settlement amount and any pension due to the respective account.
📌 Why This Matters:
This change is a major relief for families dealing with the loss of a breadwinner:
- It eliminates the need for time-consuming legal procedures to obtain guardianship documents.
- It speeds up the disbursement of much-needed funds to children and families in distress.
- It promotes simplified and humane processing of death-related claims.
This decision by EPFO reflects a broader commitment to member-centric reforms, ensuring that dependents—especially vulnerable children—receive their rightful benefits without bureaucratic hurdles.