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EPFO Held Liable for Decade-Long PF Delay
30 May
Summary
- EPFO ordered to pay Rs 50,000 for a 10-year PF transfer delay.
- Common PF transfer delays stem from incorrect details and UAN issues.
- Employees must ensure accurate data and timely requests for smooth transfers.
The Employees' Provident Fund Organisation (EPFO) has been held accountable for a significant delay of nearly 10 years in transferring an employee's provident fund. A Chandigarh commission directed EPFO to finalize the transfer within 60 days and awarded Rs 50,000 for harassment and litigation costs, dismissing the organization's defense of software glitches.
Common obstacles to timely PF transfers include incorrect or incomplete personal details submitted by employees, delays in filing the transfer request after switching jobs, and issues with Universal Account Numbers (UANs). Having multiple UANs or an inactive UAN, often due to not linking it with Aadhaar and PAN, can further complicate the process.
Employers' human resource errors, such as failing to update records or approve requests on time, also contribute to delays. Even with correct employee submissions, EPFO's internal backlogs and processing inefficiencies, including reconciliation problems and coordination issues between offices, can lead to prolonged waiting periods for PF transfers, affecting retirement fund growth.
