Automatic Transfer of PF Account: Here's How It Will Help EPF Subscribers

Posted By:
Subscribe to GoodReturns
For Quick Alerts
For Daily Alerts

    The retirement fund body in order that the main objective for the fund does not withers away and subscribes keep their savings in the account for retirement has made a call for automatic transfer of EPF account in case of job changes. The sole condition for the automatic transfer of EPF account to effect is the linking of Aadhaar with one's PF a/c.

    Automatic Transfer of PF Account: Here's How It Will Help EPF Subscribers

    As per a TOI report, the system shall be in place from next month and shall render the PF account more portable and provide added social security.

    Expert cite that "Previously there were many issues while changing of jobs. An employee had to necessarily open a new PF account with the company. Then a transfer application had to be submitted to the new company to transfer the previous balance in the new account. This was a hassle and many employees used to avoid the process especially when job switching was more frequent. As a result either they used to withdrew the money from the old account or leave it as it is".

    So, with the new system in place you shall be better off in these ways:

    Ease of transfer of PF account - With this in place, now people will not unnecessarily close the PF account and withdraw the funds prematurely and instead will keep it until maturity for long-term goals or retirement needs as the otherwise cumbersome process of transfer of PF account to a new employer in case of a job change shall be made easy.

    Aadhaar linking with PF account: The Aadhaar biometric Id has been made compulsory for opening the account as well as for the automatic transfer of PF account its linking with aadhaar is made mandatory. Further for the automatic transfer to happen, subscriber need not give any application.

    Aid social security- As with the new ruling in place, people only under grave situations shall withdraw and close the account. The sole purpose of providing social security through these funds is likely to remain intact in near future.

    Read more about: epf pf epfo
    Story first published: Monday, August 14, 2017, 11:57 [IST]
    Company Search
    Enter the first few characters of the company's name or the NSE symbol or BSE code and click 'Go'

    Find IFSC

    We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more