Pca
Service
Sumitk.saxena
Service/manager-hr
Vidyadhar Bhat
Consultancy In Pf
Bkroy
Service
K K Bhatia
Manager
+2 Others

Thread Started by #pca

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
12th November 2016 From India, Malappuram

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File Type: pdf EPF 6th Amdmt Scheme 2016.pdf (1,010.0 KB, 1588 views)

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
14th November 2016 From India, Rajkot
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to the notification, all the members will get interest from 11-11-2016 except who has retired or migrated but not withdrawn the PF amount.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
15th November 2016 From India, Pune
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?
16th November 2016
#Anonymous
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?
16th November 2016 From India, Hyderabad
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.
16th November 2016 From India, Mumbai
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:
16th November 2016 From India, Chennai
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
16th November 2016 From India, Pune
#Anonymous
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.?
21st November 2016 From India, Rajkot
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
22nd November 2016 From India, Pune
Dear All,
I came know that if employee suppose resigns or leaves with any reason apart from Death or Going abroad permanently at age 50 and as per company policy is age of retirement is 60. in this case if employee will earn interest upto 63 years of age then will he has still not claimed the amount then it will become inoperative account.
it is true interpretation?.
Sahdev
25th November 2016 From India, Rajkot
Thanks for this nice updation keep it up Thanks & Regards, from sumit kumar saxena
25th November 2016 From India, Ghaziabad
With reference to the Notification dated 11th November 2016, we would request you to clarify on the following points:-

1. Do we need to credit interest to members who have resigned and not transferred/ withdrawn their PF balance and their age as on 11th November 2016 is 58 years or more.

2. For those members who have taken up employment abroad - can they be considered "permanently migrated abroad"? Should we collect any documentary evidence proving migration abroad. How do we provde that a member has permanently migrated abroad or gone abroad for employment.

3. In case of resigning employees - Can a letter be obtained from such employees stating that they will transfer their PF to their new establishment with a certain period (Eg. 60 days) or else, PF could be settled and cheque dispatched to member's address and the settlement forms filled in advance,

4. Can the above (Point No. 3) be included in the relieving letter of the member?

5. As a part of an employees' appointment letter, can we insert a clause stating that on cessation of employment, the employee has to sign a letter for withdrawal of PF with a time limit of 90 to 180 days for the employee to transfer the PF balance to new Company / exercise the option of withdrawal,
30th November 2016 From India, Thane
Dear Sudeep,

The anawer to your queries as under:

1. Do we need to credit interest to members who have resigned and not transferred/ withdrawn their PF balance and their age as on 11th November 2016 is 58 years or more.

Ans: If retirement age is 58, interest will be paid 58 + 3

2. For those members who have taken up employment abroad - can they be considered "permanently migrated abroad"? Should we collect any documentary evidence proving migration abroad. How do we provde that a member has permanently migrated abroad or gone abroad for employment.

Ans.: If member write in the resignation as "Migrating out of India", in that case the interest will be paid DOR + 3 yrs. If in the resignation letter only resignation is written, will entatiled up to retirement + 3

3. In case of resigning employees - Can a letter be obtained from such employees stating that they will transfer their PF to their new establishment with a certain period (Eg. 60 days) or else, PF could be settled and cheque dispatched to member's address and the settlement forms filled in advance,

Ans.: It is mandatory to the member to transfer the PF to the New establishment while he join in the new establishment where PF act applicable. Not necessary to wait for 60 days.

You cannot take withdrawal application without date. In the application declaration is to be given as LAST TWO MONTHS I AM NOT IN SERVICE WHERE PF IS APPLICABLE. iT WILL BE FALSE DECLARATION.

In case of retirement, it is duty of employer to obtain the withdrawal form on retirement date.

4. Can the above (Point No. 3) be included in the relieving letter of the member?

Ans.: No. Answer included in the point 3.

5. As a part of an employees' appointment letter, can we insert a clause stating that on cessation of employment, the employee has to sign a letter for withdrawal of PF with a time limit of 90 to 180 days for the employee to transfer the PF balance to new Company / exercise the option of withdrawal,

Ans.: No. You cannot force to withdraw the amount before date of retirement.

If the member joins in new establishment where PF act is applicable, he has to provide UAN and needs to link the UAN, and the transfer application will be generated on line.

Thanks,

Vidyadhar Bhat
1st December 2016 From India, Pune
Dear Vidhyadharji,
Thanks a lot for your answers.
1) I have also few queries that if employee leaves the organisation at age of 50 and he/she do not claim the pf accumulation and the retirement age as per company policy is 60 then he will earn interest upto 63 years of age or untill he withdraws it.?
2) what to do with already Unclaimed accounts as on 31-03-2016? will they get interest ? should we transfer them into PF contributions liability from Unclaimed account Ledgers?
Thanks once Again.
Please help me on this.
Sahdev
2nd December 2016 From India, Rajkot
#Anonymous
The Answer to the Queries of Mr. Sudeep are:

1. Employee resigned and age as on 11th November 2016 is 58 years or more. - No Interest to be paid - Inoperative account..

2. Apart from the reason of resignation given as "Migrating out of India"in the resignation letter, employer can use his own source and come to know whether the employee is working in India or Abroad - Migration refers to movement of people to a new country to find work or better living - In this case interest will be paid from date of Resignation + 36 months.

3. In this case, the Employer can devise his own policy - i.e. he could obtain a letter/declaration from the resigning employee and in case of not receiving the transfer application i.e Form No. 13, within a specified period say 3 months - based on the letter, considering that he is not working anywhere else, PF could be settled and cheque dispatched to the member's address. In the letter, it should be clearly mentioned that he will transfer his PF to the new Establishment within 60 days else he will inform for additional grace period, else to treat this as his withdrawal application.

4. There is no harm in including the above in member's relieving letter and it is not barred by any law. Most of the organisations are adopting this practice. This is being done not only for PF but also for any other statutory dues.

5. Just like some organisations take bond from the employees, this too could be inserted in the appointment letter in a separate clause which will benefit both to employee and the Organisation.
2nd December 2016 From India, Mumbai
Dear Mr. Sahdev,
Member is entitle to receive interest till retirement date + 3 yrs or till withdrawal of fund, which ever earlier.
From Nov 16 onwards, no in operative account. The members migrated out of india or age above retirement date + 3 yrs interest will be received.
Thanks,
Vidyadhar Bhat
5th December 2016 From India, Pune
Friends, PFA an article on the amendment made, which could be of interest. Thanks
8th December 2016 From India, Malappuram

Attached Files
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File Type: pdf Inoperative Accounts' Under EPF 11.11.2016.pdf (210.7 KB, 61 views)

Sir I am 66 years of age and have been contributing to my EPFO account till Nov 2016 and have since left that job and am working now after a gap of one year with a company which is not covered under EPFO system . I am informed that EPFO has issued a notification in Nov 2016 which provides that an EPF account will be treated as operative and the EPF account holder will continue to earn interest if he leaves mainstream employment and take up self employment to fulfil their entrepreneurial goals or take up employment with employers not covered under EPF scheme . Such employees can now leave their EPF fund balance with the EPF authorities and continue to earn interest .
May I request you to advise the current policy pertaining to accrual of interest to such accounts ?
23rd February 2019 From India, Gurgaon
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