The employee provident fund (EPF) is a mandatory savings scheme by the Government of India, wherein the employee (i.e. us) and the employer contribute a monthly sum towards the PF organization, which offers a fixed return per year on this investment. The money is secure and after retirement, one can use this as a pension or take the money lumpsum. It has been created by the government and made mandatory, with the aim of providing financial security when one retires by ensuring a minimum savings per month. This is done through the employee provident fund organization (EPFO). Some smaller companies may manage the PF themselves, but are subject to scrutiny by the government and are allowed to invest only in government debt instruments. The interest on the EPF is fixed on a yearly basis by the government, and is currently 8.7%.

The money in the EPF is one of the safest debt instruments, with government guarantee on the principal and the interest. One can add a nominee to their EPF which makes it easier in the case of any unforeseen event. There is also an option to get a pension through the EPF subject to certain clauses such as having worked for a minimum of 10 years with the EPF being transferred between employers and not withdrawn; and one has to be a minimum of 58 years old.

When one shifts jobs, one has to change the EPF account from one employer to another, and this process can be cumbersome. The first step is to fill out the Form 13 with the new employer who has to submit this to their PF office, who will then in turn write to the old PF office requesting for the transfer. If possible, try to get an acknowledgement of this form from the PF office (through your new employer).

One can then check the status of the transfer request on the PF website. You will need to know details such as the relevant PF office, establishment code, and account information - all of which can be availed from your employer.

The EPFO has recently started an “e-passbook” facility on their website, giving EPF subscribers a real time account of their account balance. This is necessary before the PF will be transferred, and you should register for the same at the earliest.

If the transfer is stuck, you can visit the new and old PF offices to try and meet the concerned officials (one might not always be allowed to talk to the officials) to see what the issue is. One can also speak to their old employer to try to expedite the process. However, if there is an inordinate delay in the transfer, you should document your grievance online with the EPFO's online Grievance Management System. If there is still no response, you can write a letter to the PF office.

Summary:

> EPF is a mandatory savings & retirement scheme setup by the government & monitored by the EPFO

> Companies with over 20 employees with basic salary up to Rs. 6,500 have to contribute to the EPF

> It is one of the safest debt instruments, and is backed by the Government of India

> Form 13 is mandatory for transfer of PF

> Register for the 'e-passbook' facility

(Contributed by Anil Rego, CEO & founder, Right Horizons)