Employee Provident Fund (EPF) is an important employee benefit that you can count on to support your superannuation fund. A PF account is opened by your employer right when you start working and remain intact until your retirement. All employers contribute a portion of your basic salary each month along with a fixed percentage from your end as well. Thus, PF is a joint effort to create a sizeable corpus for your retirement.
In your career, you might find different opportunities and move from one company to another. You can rest assured that the new rules allow the transfer of your PF account easily from one company to another. Let us look at various methods and processes of PF transfer.
EPF Tracking and Transfer
The Employee Provident Fund Organisations (EPFO) has come up with a common identifier to track the EPF for each employee. It offers a 12- digit unique account number called as UAN ( Unique Account Number) and can be tracked online for all details. Even a mobile app development company also has its own member ID. So each of the companies that you work in will be added to your UAN as a member ID. There is an e-passbook similar to a bank passbook where you can view the transactions – deposits by employers. Now each of these member IDs is added to your UAN as soon as your new employer adds you under them and pays the monthly contribution.
However, as an individual, each member ID is seen separately under your UAN. This can create hassles for you when you wish to know the consolidated amount of all the deposits in your EPF. So you can get the amount collected from the previous employer into the ID of the new employer so that all amounts are together.
There is again an online facility for this work which has simplified the process manifolds. In the EPF online account, look for the “One Member – One EPF Account” option in the account. A transfer request can be out through from here. Using this will ensure all the amounts from different employers are added into a single account.
However, this facility is possible to be utilized only if you meet the following requirements –
- Your UAN account is linked to your KYC.
- A single-member ID can be subjected to one transfer request only.
- Previous bank code/IFS code should be available.
- Personal information authentication during transfer should go through.
Hence, as soon as your online account is created, ensure your name, Aadhar number, mobile number email, bank account number, and IFSC should all be in order.
- Once you put in the request, and all the above information is in order, check the details of the employer.
- Select all the employers you wish to consolidate.
- You need to authenticate the OTP that will be generated.
- Take a print out of this request and submit to your current employer.
There is an extended process if you happen to have two UAN ids due to non-disclosure with your new employer or not filing the date of exit by your employer in the documents while you were leaving from your previous organization.
Investment options to grow PF corpus
Since EPF can be withdrawn, the next question will be where to invest money this chunk of money, which can be a great capital for the future. Instead of transferring it to the new employer, you can put in a high yielding and safe company FD, which automatically takes you to the top of the interest rate earning scale. Companies like Bajaj Finance offer one of the most trusted and creditworthy fixed deposits with FAAA Rating by CRISIL and MAAA Rating by ICRA.
You can easily avail interest rate of 8.65% for a cumulative 3-year FD and continue to earn 8.95% if you are a senior citizen. Unlike EPF account, these deposits will give you positive returns even when inflation is high.