When EPF accounts are classified as ‘inoperative’, employees’ savings have been put on hold. The EPFO has provided guidance on how to obtain your EPF and reactivate accounts as they relate to your formerly active EPF account.
What is an ‘inoperative’ EPF account?
An EPF account will be declared inoperative when there have been no contributions into that account for a minimum period of thirty-six consecutive months from the date of resignation, retirement, or transfer. Because many employees do not transfer the balance of a previous EPF account into a new employer’s EPF account, their accounts have become inoperative as a result.
If an EPF account is classified as active, the EPFO will continue to credit interest to the account holder’s account. However, if an EPF account is inoperative, it is likely that you may have access difficulties or difficulty managing your account until it is reactivated by the account holder.
Why do EPF accounts become inoperative?
In addition to the reasons stated above, there are several other reasons for which EPF accounts can become inactive. Some common examples of this are listed below.
- Change of employment without transferring previous EPF balance.
- Temporary separation/unemployment.
- Moving to a foreign country.
- Failure to complete the linking of UAN to KYC documentation.
- Retirement and request for withdrawal of retirement balance.
- Because of the high rate of job mobility among employees, the number of employees that will have an account balance or funds in an EPF Account is low.
Step 1: Confirm Your UAN
You may confirm your UAN by visiting an authorized person.
- You will find the links from the EPF Member e-Sewa website.
- You should logon with the UAN and password.
- Check for the link of the previous member id with the UAN.
- If not found, send you your UAN by the registered mobile number on EPF website.
Step 2: Verify Your KYC
Your account will be inactive if your KYC does not have the complete information entered. Make sure that you have the following items entered and confirmed in your KYC-
- Aadhaar No.
- PAN No.
- Bank Account
- Mobile No.
You can enter and confirm these using “Manage” option from the EPF member e-Sewa portal; however; you may require your employer to approve for making the change.
Step 3: Transfer Your Old EPF Balance If You Have Switched Jobs
The most effective way of reactivating an existing inactive account is to transfer your previous EPF balance into the EPF account of your present employer.
To complete a transfer of your EPF account, follow these steps:
- Log in to your EPF Member e-Sewa account.
- Click the ‘Online Services’ link.
- Choose the ‘One Member, One EPF Account’ option.
- Verify your Employment and Personal Details.
- Request a Transfer for your Employer to approve.
- When you receive the approval from your employer, your account will return to an active state.
- Withdraw Your Balance
If you are Retired, have been unemployed for over 2 months, or otherwise qualify to withdraw your funds, you can choose to withdraw the (Form 19/10C) instead of transferring them and submit your withdrawal request through ‘Online Services’.
Be sure to have Aadhaar-based authentication set up. Funds will be directly deposited into your registered bank account.
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What if You Have Issues?
If you notice issues:
- Raise a grievance on the EPFO Grievance Management System (EPFiGMS) and your HR for verification issues.
- If you cannot resolve the issue online, visit your nearest EPFO office with supporting employment records and identity.
- Acting now to transfer (as opposed to leaving an EPF account inoperative) will simplify your ability to withdraw funds from your EPF and your retirement planning by consolidating accounts:
- Easier to keep track of your savings
- You receive interest automatically
- Less documentation required for you to withdraw funds when you retire
- Eliminate the risk of taxes owing to you or to the government
Financial planners recommend transferring the balance from one EPF account to another immediately after you change employers, rather than allowing the balance from your current account to remain dormant.
Conclusion
Reviving your dormant EPF account is a straightforward online process using the EPFO Member e-Sewa website. If your KYC is up-to-date, you have a live UAN and have completed a transfer / claim request form, you can reclaim full access to your retirement savings.
If you have changed jobs or your EPF account has been dormant for several years, you may want to check the status of your EPF account and return to active management of your hard-earned retirement savings.
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