UID will replace PF A/C Number

The EPFO plans to replace the PF a/c number with UID number so that it will help subscribers to to transfer thier accounts to new employers quickly & also without hassles. They could then be able to access their account online. At present it takes months together for the account to get transferred & hence most of the employees either close their accounts or go in for fresh accounts with the new employer. This replacement of PF a/c number with UID is expected to happen by March 2012 when all the branches of EPFO are inter-connected.
In a pilot study conducted at EPFO’s Karnal office, it was found that over 30.2 per cent of subscribers withdraw their PF within a year of joining service while 54.3 per cent do so by the end of the second year.
EPFO having a subscribers’ base of about 4.7 crore, processes over 60 lakh claims every year. It manages about Rs. three lakh crore of funds and receives an incremental deposit of over Rs.25000 crore every year.

There is also a proposal (though in a very initial stage) to prevent subscribers from withdrawal from PF before retirement so as to ensure social security to the working class compulsorily. This is in fact the right move so that it ensures that the vast majority of the population now in their early 30s will not become a liability to the nation without proper provision for retirement.