Employees’ Provident Fund Organisation or EPFO, which manages your EPF money, has been taking many initiatives for the benefit of employees. EPFO has about 5 crore subscribers, manages a corpus of over Rs. 10 lakh crore. EPFO receives 1 crore claims every year including those pertaining to EPF withdrawal, pension fixation and insurance. These EPFO developments will hasten the claim settlement process relating to EPF withdrawal, pension fixation and advances.
Have you noted the initiatives of EPFO developments in 2017 ??
Let’s have a glance at the 5 EPFO developments:
1. PF Auto Transfer
Transferring your Employee Provident Fund (EPF) account while changing jobs has been easier now. EPFO has launched a new composite Form 11, which has replaced Form 13 in all cases of auto transfer. This was stated by EPFO in an order dated 20 Sept 2017. Employees who are changing jobs are no longer required to file separate EPF Account transfer claims using Form-13.
Once you fill Form 11 and your details are validated by the new employer, your EPF account balance will be transferred to the new employer as soon as your first-month contribution gets credited.
2. Linking UAN and Aadhaar online
On 17 Oct 2017, EPFO launched an online facility for its subscribers to link their 12-digit unique Aadhaar number with their Universal Account Number (UAN). EPFO on its website www.epfindia.gov.in has created a link “eKYC Portal”, through which its subscribers can link their Aadhaar card with their UAN. In this process, your employer is not involved.
The benefits of seeding your EPF account with Aadhaar number include submitting claims directly to EPFO without employers’ attestation, receiving monthly updates on the mobile number registered with your UAN and download e-passbook and checking your passbook balance and other details.
3. Correction in Name, DOB & Gender online
EPFO has introduced a new facility on 21 Nov 2017 where subscribers can give an online request for correction in name, date of birth and other details. Under the offline method, if an EPFO subscriber wants to correct basic details such as his/her name and date of birth, employee and employer are required to submit a joint request to the concerned EPFO office for correction of the details of an employee. To ease the process, one of the EPFO developments was the introduction of an online facility. EPFO subscribers can now give online request to his/her employer for correction in basic details.
Refer to the following blog for more details :
4. Credit ETF units to PF accounts
EPFO approved a proposal for crediting Exchange Traded Fund (ETF) units to Provident Fund accounts for its 5 crore members on 23 Nov 2017. However, Employees’ Provident Fund Organisation (EPFO) subscribers would be able to see ETF units in their PF accounts by March-end next year.
EPFO’s apex decision making body Central Board of Trustee (CBT) has approved an accounting policy for valuation and accounting of equity investments which was prepared in consultancy with IIM Bangalore.
EPFO’s Central Provident Fund Commissioner revealed that the retirement fund body will start crediting ETF units to the subscriber’s accounts by March-end this fiscal.
Whenever the subscribers take advance or settle their PF accounts, the ETF units would be liquidated by EPFO.
5. Centralised payment system for EPFO
EPFO has also approved a proposal on 23 November 2017 for a centralised payment system for EPFO using National Payments Corporation of India (NPCI) platform, which would not only reduce transaction charges but also bring more convenience. The new system would enable EPFO to transfer funds on a same day to the beneficiaries through NPCI platform.
The present decentralized system of EPFO for making payment to its beneficiaries involves a higher cost of transactions, delays in re-credit in case of a failed transaction and does not provide for Aadhaar enabled payments.
The new system would enable EPFO to transfer funds to the beneficiaries on the same day through NPCI platform. Moreover, EPFO may reconcile the transaction status on the T+0 basis (day of the transaction plus zero days).
This will result in early recredit in the accounts of beneficiaries in case of failed transactions. It will also have the facility of Aadhaar enabled transfer of funds.
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