NewDelhi: The Employees’ Provident Fund Organisation (EPFO) has shared in a social media post regarding the crucial aspect of an inoperative account in the event of death of an employee.
EPFO has tweeted, “Let’s understand the Inoperative EPF Account. If an employee dies during their service, their EPF account becomes inoperative 3 years after the date of death.”
EPFO has also urged that the family members or legal heirs should file the EPF claim in time to avoid loss of interest.
What Is Considered An Inoperative EPF Account?
As per EPFO, an account is classified as Inoperative account in which contribution has not been received for 3 years after retirement or permanent migration abroad or in case of death.
Can You Earn Interest On Your Inoperative EPF Account?
No, inoperative account will not earn any interest your. At present, all active accounts will earn interest upto 58 years age of a member.
What Should You Do If Your EPF Account Becomes Inoperative?
If you are still working in an establishment covered under EPF & MP Act, 1952, you should get the amount transferred into your new account either by online or offline mode. If you have retired then you may withdraw the amount.
EPFO E-PRAAPTI portal
EPFO is expected to soon launch E-PRAAPTI, a specialized digital platform to help members identify, track, activate their old or inoperative EPF accounts. The upcoming portal will aso allow PF subscribers to link with the current Universal Account Number (UAN), Labour and Employment Minister Mansukh Mandaviya had earlier said.
The portal will provide a streamlined Aadhaar-based authentication mechanism that will enable members to securely access their old EPF account which may not have a UAN linked with it and initiate the process for updating their member profile followed by seamless UAN linking and activation.
A large number of people who started working in the pre-UAN era may benefit from the facility as they may have worked with multiple employers during that time and are unable to provide a complete chain of their work history when submitting claims to the EPFO.
The minister said that in the initial phase, the portal will be member ID-based which will ensure a safe and efficient rollout while providing immediate benefits to a large segment of members who have their member IDs.
The new platform will significantly reduce the need for manual intervention, minimise documentation requirements and enhance the transparency and efficiency of provident fund account management.
Bureau Report
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