EPF Service Provider – Improvements
Look forward to better service and returns from your EPFO
You, as a salaried employee, are aware of your deduction of Employee Provident Fund ( EPF ) contribution from your monthly salary. Your EPF contribution is deposited to Employee Provident Fund Organisation ( EPFO ) for fund management. EPFO is an autonomous body under ministry of labour. EPFO manages corpus of over Rs 3,00,000 crores. EPFO manages your money among 3 schemes Employee Provident Fund Scheme, Employee Pension Scheme and â€œEmployee Deposit Linked Insurance Scheme. EPFO have around 5 crore account holders and covers over 5 lakh companies. You, as salaried employee, are the account holders with EPFO.
Most of the times you do not need to interact with EPFO. Your interaction with EPFO is limited to withdrawing your EPF or transferring your EPF from one company to another or getting your regular pension. Even during this limited interaction with EPFO, your customer service experience is not good. EPFO has initiated customer service friendly improvements to address your concern of customer service.
Electronic Payment System
This initiative is a major step towards improving customer satisfaction. EPFO will make payments to you, as EPFO account holders, using National Electronic Find Transfer Network ( NEFT ). NEFT covers 95 banks having over 67,000 branch network. NEFT is a nation-wide system that facilitates electronic transfer of funds between any bank branches in the country. Electronic payment system will be used for credit of your EPF withdrawal and / or your pension amount into your bank account. This initiative will allow EPFO to credit your EPF withdrawal amount into your bank account within 2 days after your withdrawal claim approval by EPFO. Till now EPFO have been sending your payment by cheque. The process of sending cheque takes time and is prone to errors resulting in customer complaints. Electronic Payment System advantages are -
- Faster credit of PF withdrawal amount into your bank account
- Lesser errors in transfer of amount to you as compared to cheque payment, which is prone to errors like incorrect payment, incorrect name, incorrect bank details, incorrect address, etc
- Speedy transfer of pension amount into your bank account thereby reducing withdrawals from Pension scheme
Claim Settlement Improvement
EPFO have initiated to hire manpower to increase the number of EPF claim settlements. 11,75,160 claims are pending till March 2009, as per EPFO report. Out of this, around 60,000 claims have been pending for more than 6 months
Pension Credit Alert
EPFO is planning to collect mobile number of account holders of â€œEmployee Pension Schemeâ€. This will enable EPFO to send sms alert to account holders informing credit of your pension amount to your bank account
Invest in Bonds of Private Companies
EPFO have been allowed to invest in bonds of private companies in which government has at least 26% equity share. Also these private companies bonds should be rated AAA by at least 2 rating companies. Previously EFPO was mandated to invest in bonds of only public sector companies, three banks and 2 finance companies. Investment into bonds of private companies will help EPFO to broaden the investment options to generate better returns for itâ€™s account holders.
Identify and Payment from In-Operative Accounts
EPFO is planning to indentify in-operative accounts and then proceed with payment of amount from these in-operative accounts. As on March 2009, EPFO have around 1,66,096 in-operative accounts with total balance of Rs 5,893 crores in these in-operative accounts
The initiatives by EPFO will improve servicing and returns for you, the account holders