Hassle-free Transfer of Provident Fund

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Hassle-free Transfer of Provident Fund

 

 the nearly 1 crore claims the EPFO receives every year,about 90 lakh pertain to transfer or settlement of ac­counts.

This not only put an immense amount of pressure on EPFO, but also the very objective of social security is lost as most members choose to withdraw their savings from old PF .accounts.

EPFO to issue Individual Account Number

In a bid to keep up with the in­creasing contractual workforce, the Employees’ Provident Fund Organisa­tion (EPFO) has decided to issue indi­vidual account numbers to its members that will function independent of their employers.
Of the nearly 1 crore claims the EPFO receives every year, about 90 lakh pertain to transfer or settlement of ac­counts. This not only put an immense amount of pressure on EPFO, but also the very objective of social security is lost as most members choose to withdraw their savings from old PF .accounts. Hence, in the recent EPFO’s Central Board of Trustees (CBT) — the EPFO’s apex decision making body — meeting Central PF Commissioner RC Mishra an­nounced that the EPFO would try to give all its 6.15 crore subscribers individual account numbers by March 31, 2013. He further said this is especially important for contractual workers or those in the construction industry. It will also help improve the functioning of the EPFO.
Initial calculations reveal that a worker earning Rs 5,000 per month can earn a pension of Rs 2,100 per month after 25 years through the Employees’ Pension Scheme (EPS).
The EPFO is now planning to latch on to the Unique Identification Authority of India. Under the plan, UID will be used ag a platform for issuing individual account numbers.
The EPFO will start off the project by converting all existing account num­bers into centralised numbers. As and when subscribers get UID numbers, it will merge all his multiple PF accounts into one account. An investment of Rs 200 crore is understood to have been outlined for this exercise

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