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PF Rules Tweaked to Tighten Norms on Withdrawal

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Retirement fund body EPFO has tightened the norms on withdrawal of provident fund and its investment in Varishtha Pension Bima Yojana for its over 50 million subscribers.
“Now, subscribers won’t be able to claim withdrawal of their PF after attaining the age of 54. They will have to wait till they are 57. The ministry has notified new rules,” a senior official said.
Under earlier rules, Employees’ Provident Fund Organisation subscribers could claim 90% of the accumulation in their PF account at the age of 54 and their claims were settled just one year before retirement.
The official said the earlier clause was relevant when establishments had a retirement age of 55 or 56 years. “But in today’s scenario, when retirement age is 58 years across organisations, the clause is not relevant. But the big change is that now, under this facility, the subscriber will be able to withdraw his contribution and the interest earned on it, unlike 90% of the total accumulation earlier,” he explained.
In another change, the EPFO has made it mandatory to wait till the age of 57 to claim PF withdrawal in order to transfer the amount to the Life Insurance Corporation of India under its Varishtha Pension Bima Yojana.
In another enabling amendment, subscribers can directly file claims, like PF withdrawals, without the attestation of present or previous employers.
Hindustan Times, New Delhi, 27th February 2016

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