07/07/2015
Government May Cap Premature PF Withdrawals at 75%
New Delhi:
The government is looking to cap premature provident fund withdrawals
at 75 per cent for EPFO subscribers at any given time till the age of
58.
Under the existing provisions, Employees Provident Fund Organisation (EPFO) subscribers can withdraw the entire amount by showing not employed anywhere for two months.
The proposal regarding changes in 'The Employees' Provident Fund Scheme' has been sent to the Labour Ministry for approval.
"We will take a decision in this regard in the next 10-15 days," Labour Secretary Shankar Aggarwal said.
Central Provident Fund Commissioner K K Jalan also said the proposed changes are likely to be notified in the next 10-15 days, as it has got the backing of employee unions.
Asked whether the 75 per cent withdrawal ceiling has been proposed for even circumstances like constructing a house, marriage, children's education, etc, Jalan replied in the affirmative.
The idea behind the proposal, he said, is to ensure that provident fund is used as an old-age security and not misused for purposes other than it was meant to be.
The provident fund money, he said, should be used as an old-age security scheme and not like a savings bank account.
Mr Jalan added the EPFO plans to gradually further cap the withdrawal limit to up to 50 per cent and also put a ceiling on the number of withdrawals by a subscriber.
"Presently, out of the 1.3 crore annual claims, not less than 65 lakh claims are for full withdrawal. If the proposal is implemented by the Centre, the total number of claims would come down to 50 lakh," Mr Jalan said.
Elaborating on the rationale behind the 75 per cent cap proposed, he pointed out that the contribution of an employer including interest, in any case, does not exceed more than 75 per cent of the total contribution.
Under the existing provisions, Employees Provident Fund Organisation (EPFO) subscribers can withdraw the entire amount by showing not employed anywhere for two months.
The proposal regarding changes in 'The Employees' Provident Fund Scheme' has been sent to the Labour Ministry for approval.
"We will take a decision in this regard in the next 10-15 days," Labour Secretary Shankar Aggarwal said.
Central Provident Fund Commissioner K K Jalan also said the proposed changes are likely to be notified in the next 10-15 days, as it has got the backing of employee unions.
Asked whether the 75 per cent withdrawal ceiling has been proposed for even circumstances like constructing a house, marriage, children's education, etc, Jalan replied in the affirmative.
The idea behind the proposal, he said, is to ensure that provident fund is used as an old-age security and not misused for purposes other than it was meant to be.
The provident fund money, he said, should be used as an old-age security scheme and not like a savings bank account.
Mr Jalan added the EPFO plans to gradually further cap the withdrawal limit to up to 50 per cent and also put a ceiling on the number of withdrawals by a subscriber.
"Presently, out of the 1.3 crore annual claims, not less than 65 lakh claims are for full withdrawal. If the proposal is implemented by the Centre, the total number of claims would come down to 50 lakh," Mr Jalan said.
Elaborating on the rationale behind the 75 per cent cap proposed, he pointed out that the contribution of an employer including interest, in any case, does not exceed more than 75 per cent of the total contribution.
Aadhaar
Seeding cum Registration Camps for Pensioners
Important
Message for All Pensioners
Aadhaar Seeding cum Registration Camps
Aadhaar Seeding cum Registration Camps
For
implementation of Jeevan Pramaan- an Aadhaar based life certification system –
all pensioners are requested to furnish their Aadhaar Numbers to their
bank, if not already done. The pensioners who do not have “Aadhaar” are
requested to obtain Aadhaar number.
Pensioners
residing in the NCR may visit an Aadhaar Camp on any one of the following days
with original PPO, Aadhaar Card, and bank pass book along with photocopies
of these documents.
Pensioners
who do not have Aadhaar number yet may in addition carry a photo id like Voters
Card.
Jeevan
Pramaan is in addition to the other existing facilities for submission of Life
Certificate.
Camp
Timings: 9am to 5pm
S. No.
|
Place
|
Date
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Complete address
|
1
|
Rajendra Place
|
13th July 2015
|
Opp Hospital B L Kapur, near Rajendra Nagar Metro Station
|
2
|
Civil Lines
|
14th July, 2015
|
Punjab National bank Central Staff College, Underhill Road, near
Metro Station Civil Lines
|
3
|
Scope Tower Luxmi Nagar
|
15th July, 2015
|
Auditorium Hall, Scope Tower, Luxmi Nagar, Delhi
|
4
|
Noida Sec-1
|
16th July, 2015
|
Punjab National Bank, C-13 Sector 1 NOIDA. Near Sec 15 Metro
Station
|
5
|
NIT, Faridabad
|
17th July, 2015
|
Punjab National Bank, Neelam chowk, NIT Faridabad, Haryana
|