With the new initiatives taken by EPFO, your PF will now be automatically transferred in case of switching your job.
Gone are the days when it used to take months for transferring your provident fund (PF) to your new employer in case of changing your job. With the new initiatives taken by retirement fund body Employees’ Provident Fund Organisation (EPFO), your PF will now be automatically transferred in case of switching your job.
“Earlier there were many issues while changing a job. 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,” says Jitendra P S Solanki, CFP & Planner For Special Needs Member Families.
However, now with the introduction of auto transfer of PF, transfer of provident fund has become very easy and also very helpful for those who change their jobs frequently.
There are, in fact, 2 ways now to transfer your EPF accumulations after changing jobs:
1. When an employee joins a new company, he will now have to fill up the Composite Declaration Form (F-11), in place of Form 11, and submit it to the new employer. This form seeks details of your old PF account and your Universal Account Number (UAN), if allotted. The Composite Declaration Form (F-11) has been introduced by EPFO recently.
2. The new employer will then furnish these details on the employer’s portal at EPFO.
3. If UAN is linked with Aadhaar and the previous employer has verified it, then the portal will trigger the auto-transfer process.
4. An SMS will be sent to the employee confirming the start of auto-transfer process.
5. Once the first instalment of employee PF is deposited by the new employer and reconciled, the auto transfer will be processed and a final message will be sent to the employee for completion of transfer of old EPF accumulation to new the EPF account.
If the Aadhaar number is not linked to the PF account or UAN and the verification is not completed by the previous employer, then the PF transfer will be done offline. The online facility is not available in such cases.
“Here the employee has to fill up Form 13 and submit it to the new employer. Then the employer will submit this application in the EPFO office and the PF will get transferred in due course. The attestation of both the previous and the new employer is required in an offline transfer. That’s why this process takes a much longer time sometimes,” says Solanki.