The Employees Provident Fund Organisation (EPFO) is planning to automate the process of PF transfer when an employee switches jobs. This is to help the subscribers of the retirement fund service to keep track of the contributions made by their previous employers and the interest accrued on them.
At present, an EPF subscriber provides his UAN to the new employer who then uses it for depositing his or her EPF contributions. But the UAN account does not reflect the EPF contributions made during the subscriber's previous job and interest accrued on that. The subscriber has to file an online claim through the activated UAN to get credits of EPF contributions made during his or her previous job.
Automation of PF transfer will use the UAN to eliminate the need to manually file PF transfer claims every time. The initiative is being tested on a pilot basis and will be implemented any time next year, PTI reported. This is also in line with EPFO's goal to become entirely paperless.
Here's what employees may have to bear in mind to avail the benefit of automated PF transfers when the facility is introduced.
The employee will have to fill the Composite Declaration Form (F-11) to avail the benefits of automated PF transfer on job change, complete with his UAN and the previous PF number. The moment the new employer files the monthly EPF return via the UAN of the new employee, the EPF contributions and interest earned earlier on that would be automatically transferred. This will enable the employee to get the credits of his EPF contribution during his previous tenure with old employer into his or her UAN automatically. The employee will be notified via SMS once the transaction goes through.
Linking Aadhaar-bank details
Before switching jobs, the employee should ensure that his PF account has Aadhaar and bank account details seeded and verified by the previous employers. This is important as seeding Aadhaar and bank details with the PF account is required for online submission of PF Withdrawal /Settlement /Transfer claims.
Unifying PF accounts over the course of one's career is likely to help extend the EPF contribution period as older accounts are merged. Also, this is expected to better the employee's pension eligibility. As of now, 10 years of regular PF contribution is required to be eligible for pension under EPS.