EPF Alert! ‘No need to transfer your PF account while changing jobs,’ Here’s what EPFO Board said
EPFO took a crucial decision at the 229th meeting that took place on November 20, regarding provident funds of employees.
New Delhi: The Provident Fund is considered one of the most important investments for the future of the working class. Recently, the Employees Provident Fund Organisation, or EPFO, Board of Trustees has undertaken a significant decision regarding the transfer of PF money while changing jobs.
On November 20 during the 229th meeting, the EPFO Board of Trustees have issued a centralised IT system of PF account, allowing employees to avoid having the PF funds moved on changing jobs.
According to the decision, when an employee changes jobs, the PF account number will remain the same and thus the employee does not have to worry about PF transfer.
The functionalities will move on a central database in a particular manner which will aid smooth operations and enhanced service delivery. The system will further facilitate the de-duplication and merger of all PF accounts of any member.
Reportedly, after changing jobs, the employee has to file documentation at both the previous and new employers. Often, many PF holders do not transfer their funds to their new account owing to the hassle like complications and time-consuming procedures.
Using the prior UAN number, a new PF account can be formed in the new firm. As the PF holder did not transfer the PF amount from the prior business, the total amount in the PF amount will not be shown.
Besides, the retirement fund manager has decided to enhance the power of its advisory body Finance Investment and Audit Committee (FIAC) to take a call on investing new asset classes.
“At present, we have decided to invest in only newly added government instruments (bonds and InvITs). There is no percentage for that. It will be decided on a case to case basis by FIAC,” Yadav said after the meeting.