EPF (6th Amendment) Scheme 2016 Notified On 11.11.2016 - CiteHR
Pca
Service
Sumitk.saxena
Service/manager-hr
Vidyadhar Bhat
Consultancy In Pf
Bkroy
Service
K K Bhatia
Manager

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Friends,
PFA notification dated 11.11.2016 amending para 72(6) of EPF Scheme. Now unclaimed PF amount will be transferred to inoperative account only after retirement from service after attaining age of 55 years or after migration abroad permanently.
Thanks


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Thanks sir for your information. it means if employee is retired or went abroad and he hasnt claimed pf accumulation more than 3 years will not get interest. Thanks
Dear Sir, According to the notification, all the members will get interest from 11-11-2016 except who has retired or migrated but not withdrawn the PF amount. Thanks, Vidyadhar Bhat
What happens when someone retires at the age of 60 years and does not withdraw his PF for next two to three years. Will his PF get interest in this period?
Dear Sir, What happens If someone resigns the job and not working anywhere any job and doesn’t withdraw his PF amount for tow or threee years. will he get his PF interest in this period?
As per this notification, EPF account becomes Inoperative Account (i.e. interest need not be credited to members account post 36 months) only in the event of any of the below conditions:
1) On retirement any time after member attains the age of 55 years; or
2) Migrates permanently abroad; or
3) On death of the member
The period of 36 months would start from the above date.
In all other cases the PF account will remain active (in spite of no contribution) and interest needs to be calculated and credited to member’s account on monthly running balance.

Dear Mr P C Agarwal

Thanks for your valuable update on the epf a/c transfer to inoperative account by the department.

In this regard please clarify me on the following situation.

a person retired in October 2014 after working for a period of 22.5 years & not applied for epf withdrawal or pension so far.It was advised that the EPF department would give up-todate interest for three years after retirement and after that the account shall be declared in-operative.

In line with this advice the retired employee has not applied for withdrawal or pension so far and intends to apply for withdrawal before completion of 3 years after retirement to enable him defray the same on the children marriage.

Please advise on this if it is OK to go this way or there is a chance of any problem whatsoever.However after the UAN log in it is seen that the interest is being updated by the EPF deptt for the last two years or so after the retirement.

Kindly advise on this to proceed accordingly for withdrawal,i,e whether it it would be ok to wait for three years after retirement.

looking forward to your valuable response.

with Kind Regards

K Bhatia

email at:

Dear All,
The retirement age will be defined as per the Company policy.
If the Company / Establishment decided retirement age as 60 yrs, the member will get interest up to 63 yrs and later the account will be inoperative.
From the date of death of the member, the amount is not withdrawn by the nominee, the account will get interest upto next three years from date of death. As well as the member is migrated out of india and not withdrawn PF amount, three yrs from date of migration will get interest.
Accordingly, the establishment will have to register the retirement age to the RPFC.
If the establishment's reiurement age below 55 yrs, interest will be paid for 55 + 3 = 58 yrs.
Thanks,
Vidyadhar Bhat

Dear Senior,

I have following queries regarding this notification.

Dear All,

 

We have received the Notification regarding the interest on in-operative account. we have studied the same and we have followings queries regarding the same. on confirmation/clarification on the same we finalise the changes.

 

1) if the normal Retirement age is 58/60 and if employee leaves the organization after 55 year age and before retirement age it will be treated as resignation or not? interest will be credited to his account or not.

 

2) if employees becomes in operative between April-16 to October 2016(as on 1st November). will interest will be credited to such accounts from April-16 or from Nov-16?

 

3) in case of Voluntary retirement  before 55 Years and after 55 years. 

 

4) if any arrears dues or Contribution comes after the settlement and does not claimed by member fore more than 36 months. will it get interest or not? 

5) Applicability of interest on erstwhile inoperative accounts from 11.11.2016 or   the Accounts which are in the process of becoming Inoperative w.e.f.November 2016 will have to be given interest and not to be transferred to Inoperative Account and the Account which have already become Inoperative will remain Inoperative only.?

The answers of your queries are as under:

1) if the normal Retirement age is 58/60 and if employee leaves the organization after 55 year age and before retirement age it will be treated as resignation or not? interest will be credited to his account or not.

Ans: It will be treated as resignation and if not withdrawn PF amount, entitled for interest up to 61/63 yrs.



2) if employees becomes in operative between April-16 to October 2016(as on 1st November). will interest will be credited to such accounts from April-16 or from Nov-16?

Ans: Member is entitled for interest from Nov 16 onwards.



3) in case of Voluntary retirement before 55 Years and after 55 years.

Ans: if not withdrawn PF amount, entitled for interest up to 61/63 yrs.



4) if any arrears dues or Contribution comes after the settlement and does not claimed by member fore more than 36 months. will it get interest or not?

Ans.: Treatment will be as per retirement date 58/60.

5) Applicability of interest on erstwhile inoperative accounts from 11.11.2016 or the Accounts which are in the process of becoming Inoperative w.e.f.November 2016 will have to be given interest and not to be transferred to Inoperative Account and the Account which have already become Inoperative will remain Inoperative only.?

Ans.: AS per the notification if the member already retied for more than 3 yrs before, will be treated as in-operative account, continued. No in-operative account will be done as per retirement age + 3 yrs.

Vidyadhar Bhat


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