Employees are not required to transfer PF funds when changing jobs: EPFO

Employees’ Provident Fund Organisation (EPFO), a retirement fund agency, has accepted the Centre for Construction of Advanced Computing’s development of centralised IT-enabled systems (C-DAC). This update allows an employee’s PF account number to remain the same even if they change employment. They won’t have to worry about the account transfer this way.

Field functionalities will be transitioned into a central database, allowing for smoother operations and improved service delivery. The system will make it easier to de-duplicate and consolidate any member’s PF accounts.

EPFO’s recent decision

According to a press statement from the retirement fund authority, “C-DAC approved the creation of centralised IT-enabled systems.” Following this, the field features will be integrated into a central database, allowing for smoother operations and improved service delivery. The centralised approach will make it easier to deduplicate and consolidate any member’s PF accounts. It will eliminate the need for account transfers while changing jobs.”

EPFO has opted to delegate authority to its advisory body, the Finance Investment and Audit Committee (FIAC), to make decisions on investing in new asset classes for India’s provident and pension funds. According to the official release, “the Board resolved to allow the Finance Investment and Audit Committee (FIAC) to decide on investment choices for all such asset classes that are included in the pattern of investment as notified by the Government of India on a case-by-case basis.”

Furthermore, EPFO has decided to form four sub-committees comprised of members of the board from both the employee and employer sides, as well as government representatives.

The minister of state for labour and employment will chair the committees on establishing issues and the future implementation of the social security law. The remaining two will be led by the Union’s labour and employment secretary, who will focus on digital capacity building and pension concerns.

Minister for Labour and Employment Bhupender Yadav presided over the 229th meeting of EPFO’s Central Board of Trustees (CBT), the ultimate decision-making body.