Updated By: LatestGKGS Desk
EPFO: New Provident Fund Rules For Pensioners Detail Highlights
EPFO: New Provident Fund Rules For Pensioners- Details, Features, Highlights Benefits
In a significant move, the retirement fund body Employees Provident Fund Organization (EPFO) has changed it existing rules to provide more flexibility to pensioners withdrawing their employee provident fund (EPF) kitty.
Under the new EPF withdrawal rules, EPFO subscribers will now be given the option to partially withdraw (75% of the accumulated corpus) from EPF kitty after one month of unemployment or leaving the job. They can further withdraw remaining 25% of their funds and go for final settlement of account after completion of two months of unemployment.
The EPF account holders can also keep their account active with the EPFO.
As EPFO manages a corpus of over Rs 10.5 trillion, this move will benefit about 5.5 crore subscribers.
Background
Earlier, the EPF Scheme 1952 allows final withdrawal after two months from the date of cessation of employment of the member. A subscriber needs to contribute to his PF account consecutively for at least 10 years to become eligible for the pension but if the account is closed prematurely, the subscriber may not remain eligible for the pension.
As per the source, EPFO is also planning to increase the minimum pension should be between Rs 2,000 to Rs 5,000 instead of the present Rs 1,000”.
