Automatic Transfer of EPF Account from September 2017 when you shift jobs
From September 2017 onwards Employees Provident Fund (EPF) account will be transferred automatically when an employee resigns and join another company.
Speaking to the national daily, Chief Provident Fund Commissioner Mr. V P Joy said: “We are trying to ensure transfer of money if one changes jobs, without any application, in three days. In future, if one has an Aadhaar ID and has verified the ID, then the account will be transferred without any application if the worker goes anywhere in the country. This system will be in place very soon.”
According to the report, Mr. Joy said that people closing their PF accounts prematurely was one of the main challenges faced by the Employees’ Provident Fund Organisation (EPFO). Therefore, the EPFO is trying to address this challenge by improving services, and the automatic transfer of PF account at the time of a change in place of employment is one such measure,
Though, he has also said that the PF member needs to have verified Aadhaar ID as their KYC. In such cases, the PF account will be automatically transferred to any part of the country.
The move is targeted to restrict premature closure of PF accounts and it has the following benefits to the members.
- The basic purpose of PF accumulations for old age or retirement benefits.
- The benefits of retention of membership in EPFO is many fold viz. eligibility under the Employees’ Pension Scheme 1995 with 10 years contributing service; death insurance and security to immediate family/nominee, housing etc..
- As for requirement of funds for certain exigencies, the EPF scheme has various provisions under which the employee(member) can apply for non-refundable advances(Partial withdrawals) to meet the financial exigencies such as;
- i) For medical treatment under para 68J
- ii) Education of children & marriage under para 68K (up to 3 times)
iii) During closure of Establishment under para 68H
- iv) For purchase of Plot/Flat/ from any recognized society, alteration/paying to housing agency/ under para 68B, 68BD, etc..
- v) Under the new housing Scheme launched, not only the PF accumulations are paid, but the monthly PF contributions receivable are adjusted against monthly EMI’s payable to Housing agencies/banks, etc..