Composite Claim Form in EPFO -New era of Claim Settlement

EPFO is making continuous strides in e-governance and attempting to bring continuous incremental change to make its service fast, reliable and efficient.

The user experience with its e-governance efforts may not be encouraging. The messages on the official facebook page and twitter handle pour out the dissatisfaction and anger in unequivocal terms of the employers/members and pensioners.

The transition from ECR to ECR 2.0 has been rough and shoddy to say the least. Some weblinks and features are yet to be made functional. The ones which are functional are intermittent depending on the users accessing the system at a particular time.In the midst of this, announcing a new reform is itself challenging.

EPFO has simplified the system of filing claims in the ongoing path of e-governance and service automation. The call for allotting Universal Account Number(UAN) and seeding of Aadhar & bank account details will yield benefits to those who responded.

It is announced that a Composite Claim Form would replace all existing Claim forms 19, 10C, 31 and  19-UAN, 10C-UAN, 31-UAN. Meaning a 3-in-1 form replaces the three forms for a simplified claim settlement.

A Composite Claim form is of two types

1. Composite Claim Form(Aadhar)
2. Composite Claim Form(Non Aadhar)

Eligibility for filing Composite Claim Form(Aadhar) :

1. Member’s previous employment details should be updated
2. Aadhar number should be seeded
3. Bank account details should be updated and attested by employer
4. Universal Account Number(UAN) should be activated.

Salient features of Composite Claim Form(Aadhar)

1. A single claim form for claiming PF settlement(Form 19), Withdrawal benefit(Form 10C) and Advances(Form 31). Only relevant option(s) be ticked.
2. The member fulfilling the above eligibility conditions may send the claim directly to the jurisdictional EPFO office without employer’s signature. However, it is required to enclose cancelled cheque leaf for the bank account number already seeded online.
3. No revenue stamp(Rs 1) is required to be affixed by the member.
4. Income tax(Tax Deductible at Source) is applicable if the total employment period at the time of claiming EPF corpus is less than 5 years.No income tax is applicable if the PF withdrawal amount is less than Rs 50,000. Tax at flat 10% applicable if amount is more than Rs 50,000 and PAN details are submitted, else tax 34.608% is applicable.
5. This form can be availed for withdrawal benefit only if total contributory service period is less than 10 years.
6. Further relaxation/simplification has been made in application for advances as tabulated below :
   

   SL NO	PURPOSE OF PF PART WITHDRAWAL	EPF SCHEME 1952 – PARAGRAPH APPLICABLE	CHANGES MADE
   1	Housing Loan/Purchase of site/House/Flat or For construction/addition/alteration in existing house or Repayment of Housing Loan	68B/68BB/68BC	·         No additional document other than claim form required. ·         New Declaration Form and Utilization Certificate required earlier has been discontinued.
   2.	Lockout or Closure of factory	68H	No additional document other than claim form required.
   3.	Illness of member or family	68J	No change. ·         Certificate of illness by doctor is required. ·         Certificate by employer is required that ESIC facility is not available to the member.
   4.	Marriage of Self/Son/Daughter/Brother/Sister	68K	No additional document other than claim form required. Not even marriage card.
   5.	Post Matriculation education of children	68K	No additional document other than claim form required
   6.	Natural Calamity	68L	No additional document other than claim form required
   7.	Cut in electricity of establishment	68M	No additional document other than claim form required
   8.	Purchasing equipment by physically handicapped	68N	Medical certificate is required.
   9.	One year before retirement	68NN	No additional document other than claim form required. 90% of the balance can be withdrawn.
   10.	Invetment in Varistha Pension Bima Yojana	68NNN	No additional document other than claim form required. 90% of the PF balance can be transferred to LIC.

Those who are not eligible to submit Composite Claim Form(Aadhar) may submit their claims through their employers in Composite Claim Form(Non Aadhar)

Only difference would be :

1. Bank details have to be provided in the claim form along with a copy of cancelled cheque leaf/attested copy of first page of bank passbook.
2. Attestation of claim form by employer is mandatory.

Hope the members and employers find the initiative helpful.

Please share your experience regarding claim settlement is new composite claim forms in the comments below.