Next time you change your job, you no longer be required to close your old PF account and open a new one. For, come September and your PF account will be automatically transferred to your new employer whenever you switch your job. This was disclosed by Chief Provident Fund Commissioner V P Joy to the Times of India.
According to Joy, the facility of automatic PF transfer will help employees continue their contributions till they retire from job and will be good from the viewpoint of social security also. Earlier one had to open a new PF account without transferring funds and had to close the old one in most cases. In fact, premature closure of accounts was a major challenge for the retirement fund body Employees’ Provident Fund Organisation (EPFO) also.
It may be noted that EPFO has in recent months taken a number of initiatives for the benefit of its over 4 crore subscribers. The facility to withdraw up to 90% of their accumulations in their PF account for purchase of homes and the provision of loyalty-cum-life benefit of up to Rs 50,000 are some of such steps.
The members of EPFO can now also withdraw funds from their EPF account for treatment of illness and purchasing equipment to deal with handicap without medical certificates. The Employees’ Provident Fund Scheme 1952 has been amended to do away with the requirement of submission of various certificates and proformas for seeking advance for treatment of illness and purchasing equipment required in case of physical disabilities.
The EPFO subscribers will now also be able to get loyalty-cum-life benefit of up to Rs 50000 at the time of retirement for contributing to the scheme for 20 years or more. The benefit will also be provided in case of permanent disability even if the members have contributed for less than 20 years. Apart from this, the members of EPFO will soon be able to settle their claims through mobile application UMANG.