New Changes To EPF In 2017

1. Composite Claim Form

The EPFO has introduced a single page form for withdrawals. Subscribers of EPF can now fill out a much simpler form to make partial or total withdrawals. The documents required have also been reduced.

new form is called the Composite Claim Form and consists of two types:

Non-Aadhaar form - For those who have not yet linked their Aadhaar number with their UAN, this form can be used. Additional details such as date of birth and father's name will be required.

Aadhaar form - If a subscriber has activated their UAN and linked their Aadhaar and bank account number, then their details will already be embedded in the UAN Login portal. The details required in the form are lesser.

The form can be used to make partial withdrawals for a medical emergency, for weddings of self or children, home purchase, and other such reasons. The form can also be used to make complete withdrawals which is allowed upon retirement or when the subscriber has been unemployed for 2 months.

2.Documents Required

Previously, the EPFO required supporting documentation for partial withdrawals such as a wedding invitation, proof of home purchase, and so on. This has been altered and only a signature is required. At the most, an additional signature from the employer might be required as well. If your account is seeded with Aadhaar and bank account details, you will not require the attention of the employer. You will be required to submit a cancelled cheque. However, for medical purposes, you will need to support your withdrawal with a medical certificate and a certificate from your employer stating that the ESI (Employees' State Insurance) is not available for the employee.

The EPFO has included a disclaimer at the bottom of the form informing subscribers that if the money is used for other purposes, then the subscriber will have to return the money with a penalty.

3.UAN passbook

The new platform that was launched by the EPFO has helped unify the entire system. Subscribers can access their EPF Passbooks easily. They can also change their mobile numbers, download their UAN cards and find out their PF balance. Members can also make changes or update their KYC details through the online portal.

4.Online Withdrawals

Come May 2017, the online facility for withdrawals will be launched by the EPFO. If a subscriber wishes to make use of online withdrawals, they will have to link their Aadhaar number and bank account to their UAN. Through the online facility, subscribers might be able to get their settlement within 3 hours of the EPFO's receipt of the application form.

At present, the EPFO receives about 1 crore applications for withdrawals, pension fixations of group insurance benefits. It takes about 20 days for subscribers to receive their settlements. The EPFO has already carried out a pilot scheme wherein more than 50 field offices were connected to a central server.

The connections for another 123 offices are in the pipeline. Once all the offices are centralised, the withdrawal process will become seamless and quicker.