Starting from September, your Provident Fund (PF) account will be transferred automatically to the next office that you join when you change your job; this move is to stop closing PF accounts prematurely. The PF account is the permanent account. The worker can hold the same account for social security.
Talking to the TOI chief provident fund commissioner, V P Joy has stated that premature closure of PF accounts was one of EPFO’s primary challenges, and they were working to address it by improving services. “We are trying to ensure transfer of funds if one changes jobs, without any paper work, in three working days. In future, if one has an Aadhaar ID and has verified the ID, then the account will be transferred without any paperwork if the worker goes anywhere in the country. This system will be in place very soon,” Joy told the TOI.
In the last few of months, the EPFO has taken various actions to make the organization a service-friendly. Earlier in July, the EPFO directed its field offices to make final settlement of employee’s PF money on the last day of retirement. EPFO has made it compulsory for all subscribers as well as grantees to submit their Aadhaar number. It will help linking EPF account, pension account, bank account and Aadhaar number which would finally aid providing a host of online facilities to subscribers like online withdrawal and fixation of pension.
Provident Fund (PF) should be withdrawn only for primary purposes like housing, education of children, or hospitalization. Only then people will get social security. So, we are now beginning a campaign to educate people that money must be withdrawn only for basic purposes,” Joy said.