EPFO new rules: Withdraw 75% funds of PF after 30 days of unemployment
New Delhi: EPFO members can now withdraw 75 per cent of the provident fund money after one month of Labour Minister and keep their provident fund (PF) account with the body.
The Retirement fund body EPFO on Tuesday has also given its subscribers an option to withdraw the remaining 25% of their funds and go for final settlement of account after completion of two months of unemployment under the new provision in the Employee Provident Fund Scheme 1952.
However, it was proposed that the members will be allowed to take 60% of funds as an advance on unemployment for not less than 30 days. But, the CBT raised the limit to 75% in the meeting held on Tuesday.
Currently, the EPF Scheme 1952 allows final withdrawal after two months from the date of cessation of employment of the member, as a result of which many members end up withdrawing the entire amount. This leads to closure of the account and no social security cover for the subscribers.
“We have decided to amend the scheme to allow members to take advance from its account on one month of unemployment. He can withdraw 75% of its funds as an advance from its account after one month of unemployment and keep its account with the EPFO,” Labour Minister Santosh Kumar Gangwar, who is also the Chairman of EPFO’s Central Board of Trustees, told reporters after the trustees meet.
The minister further said, We have also given an extension of one year to ETF (exchange-traded funds) manufacturers SBI and UTI Mutual funds till July 1, 2019. We have also extended the term of fund managers till December 31, 2018.”
The minister said an extension of a year has been given to ETF (exchange-traded funds), SBI and UTI Mutual funds till July 1, 2019 and has also extended the term of the fund managers till December 31, 2018.
There was a proposal to give an extension of six months to its five fund managers SBI, ICICI Securities Primary Dealership, Reliance Capital, HSBC AMC and UTI AMC for managing its corpus. The five fund managers were appointed for three years from April 1, 2015. They were given extension till June 30, 2018. The CBT has approved a proposal to appoint a consultant for selection of portfolio managers.