Employees’ Provident Fund, or EPF, is a Provident Fund scheme which combines features of an insurance scheme as well as a pension scheme, designed for employees of the organized sector. The Provident Fund accumulates the funds and disburses it as per the employee’s requirements within the compliance of terms and regulations.
In case an employee quits his/her job or starts working for a new company, they have a choice to close their old PF or to transfer the previous funds’ balance to a new one. It can be done with the help of the UAN number, a unique 12-digit code provided by the Employees’ Provident Fund Organisation. This number can also help to keep track of their PF account details.
Before the introduction of UAN, the transfer process involved lengthy paperwork and validation. Now, with the help of an online self-service portal, one can easily know how to activate their UAN and use the portal for fund transfers and more.
Terms and conditions for EPF Transfer
As a salaried employee, you will enjoy various advantages if you decide not to close your PF account. These are as follows –
- If you choose to close an account before 5 years, the PF amount becomes taxable. But if you select to transfer the money, you will get the whole amount.
- You will be able to perform a partial withdrawal if you can showcase reasons such as medical emergencies, purchasing/building a house, etc.
- The interest rate from an EPFO can accumulate into a substantial sum after your retirement. You can withdraw the sum or increase the time frame further by a slab of 5 years.
How to Transfer Funds from your Previous PF
The entire process of fund transfer is online, thanks to the integration of a self-service portal. However, one has to complete their UAN activation before they proceed with the transfer.
- How to get UAN Number?
You can acquire the UAN from your employer, or online from the EPFO website. There, you will find a link to register for a new account number. It will require your phone number and specific KYC details, after which you will get the Universal Account Number.
After your UAN activation, you will have to follow some steps for online funds transfer from your previous PF account.
- Visit the EPFO website and create your login ID. You will require the UAN for this account.
- After logging in, you will have to enter your employer details, existing PF account number, UAN, and phone number. After verification of all the details, you will be able to check if your account is eligible for an online transfer or not.
- If it is, you will need to submit your ID details (preferably the one you used for UAN activation). You will receive an OTP in your phone for verification.
- You will be redirected to the EPFO Member Claims Portal after successfully logging in with the OTP and document ID and phone number. There, you will find the option to Request for Transfer of Account.
- Duly fill the PF transfer form. You will have to enter your personal details, the IFSC code of the financial institution where you have your account and your salary account number.
It will also ask for the details of your old PF account and current PF account.
- After you provide all the necessary details and submit the form, you will receive a PIN in your registered phone number. Enter it after the prompt to initiate the transfer.
Most employees in the organized sector now know what is a UAN number and how to generate one. With the integration of the online portal, the procedure to transfer PF funds has become much easier and streamlined.
The Employees Provident Fund offers financial security post retirement for an employee or his or her nominee. To gain the maximum benefit, one should also allow their scheme to mature over their employment period. In case of emergency financial requirement occurs, it is advisable to instead opt for a personal loan to cover the expenses instead of liquidating the consolidated PF funds.
Financial institutions such as Bajaj Finserv offer Personal Loans at attractive interest rates, flexible tenors, and quick disbursals. They also bring you pre-approved offers for personal loans, home loans, business loans, and a range of other financial products. These offers simplify the process of financing and help you save time.
The Employee Provident Fund is a long-term investment plan backed by the Government. Your EPF can play a key role to secure your post-retirement financial situation. Enjoy the best retirement life with EPF. Opt for short-term monetary aids to solve similar issues. Avoid liquidating your long-term investments.
