)
Four years ago, Aruna Rao applied for transfer of her Employee Provident Fund balance from her earlier job. Three years later, when she changed job again, her balance had still not been transferred. To avoid the hectic transfer process of two balances, Rao has decided to withdraw the amounts.
Such situations may become passé from October, when the Employee Provident Fund Organisation (EPFO) provides people with a Universal Account Number (UAN). Subscribers will not have to apply for transfers. They will simply give the UAN to the company.
This should come as a relief for Raja Chandran whose EPF balance hasn't been transferred even after two years.
UAN will work on the lines of core banking services (CBS). The UAN would be for various schemes by the EPFO.
"This will be a positive for subscribers. Often, they get frustrated waiting and withdraw money. Not only do they fail to create a decent corpus for their retirement, they end up paying tax on the withdrawn amount if they haven't completed five years of service," says financial planner Malhar Majumder.
Even existing subscribers will be allotted a fresh number, says EPF Commissioner K K Jalan. "Everyone will get a fresh account number. If a subscriber has five accounts, we will match the birth dates for each account, their Aadhaar numbers and other know-your-customer points will be checked. If all the data points match, the subscriber will be asked if he wants to merge the accounts," he explains.
The new account number will be 14- or 15-digit. To deal with delayed balance transfers, EPFO launched the online EPF balance transfer facility in October. Though the system has been around for six months, experts say, it isn't finding favour.
At the time of joining a new organisation, you are given a withdrawal form (Form 13), which will ask for the details of your previous organisation and PF account number. Give the form in triplicate to your present employer. The new company will fill in its details and get it attested. It will then file it to the regional PF office. It should take no more than three months to transfer.
Things are simpler online. You need to visit the EPFO site, click on Online Transfer Claim Portal and follow the process. But it is important the digital signatures of both new and old employers be registered with EPFO.
