Major news for PF account holders. People in the private sector often switch jobs frequently. This means they tend to change companies quite a bit. When they join a new company, they might overlook some important details. For instance, instead of using the existing UAN number from the employee, companies often create a new one. They also set up a separate PM account, which results in employees having multiple PF accounts corresponding to each company they’ve worked for.

 

Issues with having multiple UANs

According to EPFO regulations, each employee should only have one valid UAN. If someone ends up with more than one, it can lead to several complications.

 

Challenges in transferring PF balances

When different UANs are assigned for various jobs, merging PF balances can become tricky. This can lead to delays or even rejections when trying to transfer funds under the new UAN.

Impact on Pension (EPS)

The Employees’ Pension Scheme (EPS) may not accurately reflect the correct pensionable service period. If PF accounts aren’t merged, the total service time might not be calculated properly, potentially resulting in a lower pension.

 

Withdrawal issues with PF

Having multiple UANs can complicate the process of withdrawing funds from old PF accounts, often requiring extra documentation and verification. The EPFO might block withdrawals from older UANs since you can only withdraw from one PF account linked to a single UAN.

 

KYC updates and e-nomination challenges

With different UANs, you’ll need to update KYC and nominations for each account separately. This can lead to mismatches in EPFO records and delays in getting approvals.

 

Tax complications

The EPFO imposes TDS (Tax Deducted at Source) on PF withdrawals if the account is under five years old. Having multiple UANs can create confusion in tracking PF withdrawals, which might lead to tax issues.

 

Risk of automatic deactivation

The EPFO has the authority to deactivate old or duplicate UANs at any time.

 

 

Having multiple PF accounts linked to a single UAN can lead to complications when transferring or withdrawing your PF balance.

 

To resolve this, you can merge your UAN. The EPFO offers a One Member, One EPF Account feature that allows you to consolidate your old UANs. Simply log into the EPFO Unified Portal to submit your One Member – One EPF Request. If you need assistance, feel free to call the EPFO helpline at 1800 118 005.

 

What issues might arise from having several PF accounts under one UAN?

 

Your service period could be impacted. To qualify for the EPS pension, you must have a minimum of 10 years of service. If your PF accounts remain unmerged, your service period may be fragmented, putting you at risk of not meeting the 10-year requirement.

 

Additionally, there could be inaccuracies in pension calculations. Pensions are determined based on your last salary and total service duration. Without merging your PF accounts, confusion may arise regarding your service period, potentially lowering your pension amount.

 

You might also encounter difficulties when claiming from multiple pension accounts. If you have several EPS accounts, withdrawing or transferring your pension could become problematic. This may lead to delays in withdrawals and a more complicated documentation process in the future.

 

To merge your PF accounts, the EPFO has introduced the One Employee – One EPF Account initiative, allowing you to consolidate all your PF accounts under a single UAN. This will enable you to view and track all your PF deposits and accrued interest in one place. Your service period will be displayed as continuous, ensuring there are no errors in your pension contribution years.