EPFO Latest Update: The government wants to secure the retirement of the subscribers by separating the pension and PF accounts. If this rule is implemented, then the subscriber will be able to withdraw PF money at the time of need but the pension fund will remain.
New Delhi: EPFO Latest Update: The government is now considering the separation of pension and provident fund. The government’s motive behind this is that when the employee retires, he should have good pension money. This decision will have a direct impact on 6 crore employees in the formal sector of The Employees’ Provident Fund Organization (EPFO).
Then you will not be able to withdraw money from pension fund
Let us tell you that 12-12 percent i.e. total 24 percent is contributed by the employee and his company to the Provident Fund. In this 8.33 percent share goes to the Employees Pension Scheme (EPS) and the rest of the amount goes to the Provident Fund. Whenever employees withdraw money from their own provident fund, they also withdraw money from their pension account, as it is a single account. According to the news published in Mint, the government believes that after the separation of pension and provident fund, employees will not be able to withdraw pension fund money.
People withdrew money fiercely in corona epidemic
This move of the government will be seen as a pension reform. According to the report published in Mint, this problem increased after the corona epidemic, because during this time crores of people lost their jobs. Till 31 May 2021, a total of 76.3 lakh people have withdrawn money from these accounts in the form of Kovid Advance. Since April 1, 2020, 3.9 crore claims, including Covid advances, have been settled by EPFO till June 19, 2021.
Discussion on separation of PF and Pension Fund
According to the news of Mint, on the condition of anonymity, an official said that it is very important to separate PF and pension scheme in EPFO. There is no problem in withdrawing money from PF at the time of need, pension account should not be touched. The official said that an internal government panel had recommended the separation of EPF and EPS accounts. Which was also discussed in the board meeting of EPFO earlier this year.
The official says that even if a subscriber withdraws money from the pension fund for some reason, he will see the changed value, that is, the pension will be reduced after retirement. To reduce premature withdrawal, a subscriber may have to forego certain incentives when he breaks the pension fund.
