Stories
Can families keep EPFO pension after a pensioner's death if life certificate is not updated?
- •Pension is only payable up to the exact date of death, and any amount credited after that is considered an excess payment that must be recovered.
- •Excess pension credited after death is not inheritable and legally does not belong to the family.
- •If the family has already withdrawn the excess funds, the EPFO can initiate recovery proceedings against the legal heirs.
- •Deliberately concealing a pensioner's death to keep drawing funds can turn a recoverable overpayment into potential fraud involving legal action.
- •Families should immediately notify the EPFO branch and the bank in writing with a death certificate to freeze the account and stop further credits.
Key Questions Answered
No, a pension is payable only up to the pensioner's date of death. Any amount credited after that date is considered an excess or wrong payment, is not the family's money, and is non-inheritable.
The family should inform the concerned EPFO branch office and the pension-paying bank as soon as possible in writing, quoting the account details and providing an attested copy of the death certificate. This intimation stops further credits and initiates the formal calculation of dues.
The EPFO can calculate the excess amount and seek its recovery through a reverse credit from the deceased bank account or by initiating recovery proceedings against the legal heirs if the balance is low. Furthermore, deliberately concealing the death to continue drawing pension can turn an overpayment into fraud, leading to interest and legal action.
