As not everyone is well – versed with internet and has a secured internet connection, EPFO (Employees Provident Fund Organization) have made submitting life certificate easier.
EPFO have laid down provisions that will help pensioners to submit their life certificate smoothly as they can submit their Jeevan Pramaan Certificate in physical form. However, this facility will be provided to people who have recorded genuine reasons for non – submission of digital Jeevan Pramaan.
Also, in case a pensioner has already submitted their Jeevan Pramaan Certificate digitally, they are not required to do so again. And they would have the option of submitting the digital or paper based certificate to pension drawing bank branches.
As per the new conditions of EPFO, pensioners who have not submitted Jeevan Pramaan digitally even once can do so within this month in physical form.
To submit Jeevan Pramaan, one can visit EPFO offices, pension disbursing banks and common service centres.
Jeevan Pramaan is a biometric enabled digital service for pensioners of Central government, State government, or any other Government organizations. Pensioners have to register themselves and then they can continue to generate Jeevan Pramaan by using the Biometric authentication. Jeevan Pramaan life certificate can produced digitally from the comfort of your home as it can be done online. However, the traditional life certificates can be produced only by the authorized Pension Disbursing Agencies (PDAs) / Pension Sanctioning Authorities (PSAs) like Banks, Post offices etc.
In India more than one crore families can be classified as pensioner’s families. And one of the major requisite for the pensioners is to provide life certificates to the authorized pension disbursing agencies like Banks, Post offices etc., following which their pension is credited to their account. It requires the pensioner to be physically present in front of the disbursing agency or getting a life certificate often becomes a major hurdle in the process of receiving the pension. Being physically present causes a lot of inconvenience to the pensioners because of their age and also people often choose to move to a different location for various reasons. Hence, digital life certificate for pensioners which is also known as Jeevan Pramaan address this problem by digitizing the whole process.
At present, nearly 48.48 Lakh pensioners have registered for Jeevan Pramaan. And after 1st November 2016, nearly 31.24 Lakh pensioners have registered under Jeevan Pramaan life certificate.
This online enrollment and biometric authentication system will simplify the way pension payouts have been functioning in India. And as a part of Digital India initiative, the Jeevan Praman Scheme aims at sparing the pensioner from the trouble of visiting a PDA or PSA for the submission of life certificate.
According to the sources EPFO is introducing a new scheme of automatic transfer within 3 days. After the implementation of this scheme an employee will no longer have to transfer their Employee Provident Fund Account.
The Employees’ Provident Fund Organization (EPFO) is pondering over the option of introducing automatic EPF transfer if he / she change their job.
Contribution to the EPF Account – In EPF account, every salaried person contributes a certain portion from their salary to their EPF account along with the same amount of contribution by their employer. The contribution then compounds at a rate declared by the EPFO every year. At present, the rate of interest is 8.65% per annum.
Features of New EPFO Scheme i.e. Automatic Transfer Scheme
- Easy Hassle – Free process
The new automatic transfer scheme is going to be very convenient for the employees as the account will be transferred automatically which does not even required an application.
- Linking PF Account with Aadhaar
As Government of India has mandated the 12 digit Aadhaar card to be linked with almost every other document, this linkage can save your PF account from duplicity. Also, in order to register with the unique identity number, the transfer of an employee’s account is simpler.
Though Government have declared in Aadhaar Privacy Case that “privacy is a fundamental right”, it is yet to see if it effects on linking Aadhaar with PF.
To know more about the Aadhaar Privacy Case read: Verdict of Aadhaar and Right to Privacy Case https://rupeenomics.com/verdict-aadhaar-right-privacy-case/
- Tracing Old Accounts
As there were lot of errors at the administration level, the employees mostly choose to withdraw their PF account.
It was also made it clear by the Employees Provident Fund Organization that an employee can withdraw their PF account only if they are unemployed for three – months or if they are retiring.
However, the authorities have introduced Universal account Number (UAN) which will find a way for the unclaimed PF accounts as the process is being worked upon to be less tedious.
UAN was introduced by the EPFO for a quick and hassle free transfer of PF accounts. With the introduction of the Universal Account Number an employee can simply transfer their PF account from one organization to another by providing the UAN number to the new employer.
To read on UAN activation you can also read: How to activate your UAN
Under EPF (Employees Provident Fund), it is advisable to transfer PF accounts between organizations as and when employees change their jobs.
Earlier subscribers had to file separate EPF transfer claims which is Form 13 (For transferring PF / pension between different accounts) regarding the same.
However, EPFO (Employees Provident Fund Organization) has declared that the subscribers no longer have to file separate EPF transfer claims using Form -13 as it will now be done automatically.
Although, at the time of joining, the employees are required to provide details of the previous EPF account in new composite F-11 form (which is a declaration form by a person taking up employment in any establishment on which EPF scheme is applicable). And after that funds will be automatically transferred by the EPFO to new EPF account.
An official of EPFO also said that they are deciding upon providing Aadhaar card and bank accounts of the employees along with to use new F – 11 composite form.
Also, note that recently EPFO (Employees Provident Fund Organization) have mandated linking Aadhaar number with the EPF account after Government made Aadhaar mandatory for all the other official documents. This linkage will also help to avail subsidized scheme easily where the subsidized amount will be transferred directly into the account.
To know more about the linkage between Aadhaar card and EPF account read
So, the Composite declaration form (F – 11) is replacing form 13 (For transferring PF/pension between different accounts) which is decided by the EPFO.
EPFO (Employees Provident Fund Organization) which works under the Ministry of Labor and Employment has also introduced an online portal where a subscriber can check EPF claim status online as well. And this process is easy and hasslefree. And only an EPF member or subscriber can make a withdrawal claim.
According to a report by the Economic Times, EPFO will soon start paying part of the retirement fund to pensioners in the form of MF Units . At present during the time of exit, a pensioner gets a consolidated fund along with an interest rate decided by the EPFO’s Central Board of Trustees. The current Interest Rate on PF account is 8.65%
What does it means?
According to the new policy which is under discussion, the pensioner will be paid 85 % of the total amount with the interest rate decided by the EPFO. Return on the rest of the 15 % of the total amount will be decided on the basis Mutual Fund model. The interest rate on this particular 15 % will be paid by multiplying the units accumulated with the value of equity on the day of exit. Subscribers may defer encashment by 1 or 2 years depending on future returns and the tenure finalised by CBT.
Benefits of the new methods of Payments
EPFO started investing in equities since 2015 with only 5 % of the corpus. Since then it has been increasing its investment. The total investment by pensioners in the financial year of 2016 was Rs 6577 crores which increased to Rs 14982 crore in the financial year of 2017. Some of the predictable benefits, if the above-proposed decision is adopted are:
- As stated above the return on 15% of the retirement corpus will be higher than the regular EPF Interest Rate. Looking at current market conditions the rate of return on equity is around 15%, which is higher than EPF Interest rate of 8.65%
- It will give many investment options and help in creating new structures that will help in lifting the allocations of investment on equities.
- This will also mean that pensioners can delay their encashment at the time of exit. The subscribers can defer their withdrawals by up to 2 years, if they deem that it will ensure them higher returns.
While the proposed policy has many benefits, the opposition has already arisen from trade unions and labor unions. According to them, this policy will not be beneficial as the rate of interest based on the MF model is not fixed and may yield less return or no return at all.
To know how to check your EPF Balance please visit Ways to Check your EPF Balance
The EPFO which is otherwise called as the Employees Provident Fund Organization has come up with another online facility for correcting the details such as the name, date of birth etc. of an employee. It has been found out that, people are facing a lot of issues regarding the making of the corrections or modifications of the details of the EPFO account holder. This is the reason due to the mismatch in the name, date of birth or gender in the UAN Data and UIDAI (Aadhaar) data says the Retirement Fund Body EPFO.
The UAN or the Universal Account Number is a unique number that is assigned to an employee which serves as an umbrella for multiple member IDs provided to an individual by different establishments where he or she has worked. The UAN helps to link with multiple member IDs allotted to the single employee under a single UAN.
How to Modify the Details of the EPF Account Online
In case of the offline mode, if an EPFO subscriber wants to make any correction on his/her basic details such as the name, date of birth etc. then the employee and the employer has to submit a joint request to the concerned EFO Office. This process was a bit complex and time-consuming. Therefore, to minimize the pressure the EPFO has introduced the online facility. Now the subscribers can request online to make corrections in the basic details.
While accepting a request from the member, the system will compare and analyze the requested changes with the similar fields receives from the UIDAI (Aadhaar). After a successful verification, the request will be transferred automatically to the employer’s login for the online transmission to the EPFO field office. After getting the online request the EPFO will process the requested corrections.
Below are the steps to correct the Name, Date of Birth and Other Details of the EPFO Subscribers:
- Log in using the Member Interface of Unified Portal through the UAN Password.
- Click on the Manage section and select for “Modify Basic Details” option.
- Provide the required details as mentioned in Aadhaar (the system will verify the details entered with UIDAI Aadhaar Data.
- Click on the update details. The request will be sent to the employer for further approval. The employer can also withdraw the request if he/she wants to delete/reject Request.
- The employee has to log into the Employer Interface Unified Portal. The employer can view the change requests that have been submitted by the employees, so that the employer can take action for the further procedures.
After the approval of the request, the employer can view the latest request status. After the approval of the request, it can also be viewed in the EPFO Unified Portal. After the verification, the person can submit his/her recommendations to the Section Supervisor. Finally, the EPFO Office can approve as well as reject the case.
The EPFO (Employee’s Provident Fund Organization) has launched a new online facility for over 4.5 crore members. This facility allows merging their multiple provident fund accounts with the current Universal Account Number (UAN)…Read More