Come March 2013, salaried employees will be tension free for withdrawing or transferring their savings with the Employees PF Organisation (EPFO). As the EPFO migrates from a decentralized to a centralized system, it intends to give permanent account numbers to their holders.
Currently, salaried employees need to open new EPF accounts whenever they change jobs. Either the old PF numbers are closed or the money in it withdrawn or transferred into new accounts. It turns more complicated when the employee moves from one state to another for a job.
To put an end to this difficulty, the EPFO intends to shift to a permanent account number, akin to a mobile number, to make this possible.
A permanent account number would not only be of great help to employees but it would also reduce unnecessary burden on the EPFO, resulting in huge savings. EPFO has set a deadline of March 2013 to make its operations centralized. EPFO has about 110 million members.
Of this, an estimated three crore are active members. In many cases, an employee has multiple accounts and a good portion of accounts is lying idle, as subscribers have not transferred their funds to their new accounts.
Currently, the Organisation manages a corpus of at least Rs 4.10 lakh crore.
Once the new system is implemented, it will lead to a decline in the number of claims settlement procedures also.
With the implementation of permanent account number, the cases of premature withdrawal will reduce drastically.
From India, Ahmadabad
34Currently, salaried employees need to open new EPF accounts whenever they change jobs. Either the old PF numbers are closed or the money in it withdrawn or transferred into new accounts. It turns more complicated when the employee moves from one state to another for a job.
To put an end to this difficulty, the EPFO intends to shift to a permanent account number, akin to a mobile number, to make this possible.
A permanent account number would not only be of great help to employees but it would also reduce unnecessary burden on the EPFO, resulting in huge savings. EPFO has set a deadline of March 2013 to make its operations centralized. EPFO has about 110 million members.
Of this, an estimated three crore are active members. In many cases, an employee has multiple accounts and a good portion of accounts is lying idle, as subscribers have not transferred their funds to their new accounts.
Currently, the Organisation manages a corpus of at least Rs 4.10 lakh crore.
Once the new system is implemented, it will lead to a decline in the number of claims settlement procedures also.
With the implementation of permanent account number, the cases of premature withdrawal will reduce drastically.
From India, Ahmadabad
Dear Friends,
I differ from the information above on grounds that I have read an article posted by one of our member very recently.
"Any member resigning in a Co. and Joining the other Co. that new employer instead of allotting him a fresh number will use and forward the existing number itself thro' the new members list. Employer is expected to maintain a Separate Register to record these existing accounts separately.... For details pl. find enclosed the respective complete info attached.
From India, Chennai
I differ from the information above on grounds that I have read an article posted by one of our member very recently.
"Any member resigning in a Co. and Joining the other Co. that new employer instead of allotting him a fresh number will use and forward the existing number itself thro' the new members list. Employer is expected to maintain a Separate Register to record these existing accounts separately.... For details pl. find enclosed the respective complete info attached.
From India, Chennai
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PF-Code number.doc