look news india
A shocking figure has come to light on the floor of Parliament regarding the Employees’ Provident Fund Organization (EPFO), which manages the hard-earned money and retirement funds of the country’s employed employees. The Union Ministry of Labor and Employment, while giving a written reply in the Parliament, has given official information that at present, a huge amount of Rs 85,05,15,71,020 (about Rs 8,505 crore) is lying unclaimed and inoperative in more than 21 lakh EPF accounts across the country. There has been no claim on this huge amount by any account holder or their legal heirs for a long time. After this revelation in the Parliament, the curiosity among lakhs of salaried employees who have changed jobs and have forgotten their old PF accounts has increased to know whether their hard-earned money is not included in this unclaimed amount.
After all, why does a PF account become ‘inoperative’ or inactive?
According to the existing rules of the Employees Provident Fund Organisation, when an employee leaves one company for another and does not transfer the amount of his old PF account to the new account or no new contribution is deposited in that account for 36 months (3 years), then that account is put in the inoperative category. Apart from this, in many cases, when there is no application for withdrawal for 36 months after the employee’s retirement, permanent migration abroad or unfortunate death, the account is considered technically inactive. Earlier, interest on such accounts used to stop, but under the amended rules, interest continues to be accrued at the normal EPF rate even on inactive accounts, until the age of the account holder completes 58 years.
What are the main reasons for money getting stuck in lakhs of accounts?
According to experts and EPFO data, the biggest reason behind billions of rupees being left unclaimed in PF accounts is carelessness by employees while changing jobs.
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Not transferring account while changing job: Many employees forget to merge the old PF balance with the new Universal Account Number (UAN) while moving from one institution to another.
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Incomplete or mismatched KYC details: In old accounts, online transfer or withdrawal gets stuck due to spelling mistakes in Aadhar card, PAN card, bank account number or name and date of birth.
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Lack of nomination: In case the account holder does not file the e-nomination, after his untimely death, the family members have to face lengthy legal procedures and complexities of succession certificate, due to which the claim is not filed.
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Winding up of the company: Many small companies or startups suddenly close down, due to which employees have to face huge problems in getting their service history verified.
How to check whether your old PF account is inactive or not?
If you had worked in a company earlier in your career and PF was deducted during that time, then you can check the status of your old fund through very easy digital means.
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Login to EPFO Member Seva Portal: Login to the official portal of EPFO (unifiedportal-mem.epfindia.gov.in) with the help of your 12 digit UAN and password.
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View Service History and Passbook: Go to ‘View’ menu and select ‘Service History’ option. Here you will see the Member ID of all your previous companies.
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EPFO Passbook Portal: Go to the passbook portal and check the balance against each member ID. If an old ID shows a balance and it is not linked to the current account, it means that those funds are still lying around.
How to transfer and claim money from inactive PF account online
EPFO has made withdrawal and transfer of money from old accounts completely transparent and online under the Digital India campaign.
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Online Transfer Claim (One Member – One EPF Account): After login to the member portal, go to ‘Online Services’ tab and click on ‘One Member – One EPF Account (Transfer Request)’. Get your old member ID digitally verified through your current or former employer by entering it here. Within a few days the old funds will be transferred to your active UAN account.
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EPFO Inoperative Account Helpdesk: If you have the old PF account number but the UAN is not activated, then use the special ‘Inoperative A/c Helpdesk’ portal of EPFO. Here you can track your account by entering your old company name, joining and leaving dates and basic identification details.
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Mandatory completion of e-Nomination: Complete E-Nomination immediately in your active PF account so that in case of any emergency, your family and dependents can receive social security funds without any administrative hassle.