Why Was My EPFO PF Claim Rejected for High Contribution and Unattested Documents?

My EPFO PF claim is rejected with the following two reasons:

1) Rate of contribution is higher than prescribed.
2) Photocopy of bank passbook not attested by an authorised signatory.

I am voluntarily contributing Rs. 2000 every month to my PF account for the past one and a half years. Is this the reason for the first point? What should I do to resolve this?

I have attached a cancelled cheque with a clear bank account number, name, and IFSC code, but I am not sure why they have mentioned the second reason. Can anyone please clarify?

Issues with EPF Organisation

The reason is very simple: the EPF Organisation has become an organization for the government and not for the employees. The basic objective of the EPF Organisation is to support a number of employees who do not perform any work for the members and the beneficiaries of the Fund.

When a contribution at a higher rate is paid by the employer, the EPFO does not object because it is a receipt of money. However, when an employee withdraws the same amount, objections are raised. This is ridiculous. An employee has the right to deposit any amount into the Fund. If it is not possible, the EPFO should have objected at the time the amount was collected and not when the amount is withdrawn.

Issues with KYC and Attestation Requirements

Secondly, it is a common practice that when KYCs are uploaded, the scanned copy is sufficient. Attestation by the employer or a gazetted officer, MO, MLA, etc., was required in the last century. All other departments have dropped the attestation requirements, but the EPFO still requires it. If necessary, get the cheque leaf attested by the employer. If you have left employment and the employer is not traceable, get the cheque leaf attested by the manager of the bank where the savings account is maintained. This is acceptable because no one can attest your signature on a cheque leaf better than the bank manager.

Steps to Address EPFO Issues

Now, you can write a letter addressing the Assistant Provident Fund Commissioner stating the following facts:

1. You opted for voluntary contribution and have been paying Rs 2000 to PF since...
2. You left the company on... (two months earlier than the current date) and are currently not employed anywhere. Therefore, you cannot get the cheque leaf attested by the employer. Instead, you have obtained attestation from the bank where the savings account is maintained.

You may personally meet the Accounts Officer of the EPFO. Keep in mind that you may not receive a warm welcome from the EPFO and may experience unprofessional behavior. They may attempt to avoid a personal meeting, but you should insist on meeting with the officer. It is unfortunate that an organization like EPFO, which operates nationwide, is subjecting its poorest employees to such treatment at their front desk.

Quote "The reason is very simple, the EPF Organisation has become an organisation for the government and not for the employees. The basic objective of the EPF Organisation is to feed a number of employees who do not do any work for the members and the beneficiaries of the Fund." Unquote. Madhu Sir, I 100% agree with you on this.

Grievances against EPFO

The list of grievances against EPFO is numerous:

a) Emails to EPFO are not replied to; even escalations to the highest level are not acknowledged and go un-actioned.

b) Grievances are closed summarily without any resolution.

c) Acknowledgment cards of RPAD letters are not returned by EPFO.

d) Claims are rejected for the silliest reason "Father name mismatch"... I do not understand how the father's name should matter in case the beneficiary KYC is completed!

e) Another common reason for claim rejection that we experienced among our ex-employees is "Exit reason not available"... I don't understand how that is possible as we cannot exit an employee without giving a reason from the drop-down menu!

Recently, there was a newspaper article that stated that PF rejection rates have gone up from 13% to 34% in the last 5 years (link to the article: https://indianexpress.com/article/bu...to-34-9177874/). It appears rejection rate is now a KRA in PF!

My organization is grappling with EPFO for 10 cases, including 2 death cases and 4 pension cases. It is frustrating, and I feel helpless and sorry for the beneficiaries.

Yes, the EPFO has a Key Result Area (KRA), and that is the rejection of claims. In order to meet this KRA, they utilize their technical team and even the lowest grade staff. I am aware that the Kochi Regional Office (RO) of EPFO has a few low-grade servants sitting at the front desk! They do not permit members or even employers to meet the officers inside and clarify matters. The token system introduced was intended to regulate visitors, and to some extent, it is beneficial, but it is being misused. They seem unaware that the funds managed by EPFO are contributions from the members and employers to support the administration.

Challenges with the PF Department

The inefficiency of the PF Department is at its peak. One of my employees' UAN is showing as deactivated, despite contributions being accepted on the same UAN for the last two years. Grievances have been raised on the portal and at the regional office, but to no avail. We have visited the regional office in person and handed over a letter. They have simply acknowledged it without providing any resolution. There has been no action taken on this matter for months. We have sent many registered posts to the head office, but we have not received any acknowledgment or seen any action taken. As HR, we are accountable to the employee. The PF department seems least concerned about the issue. They are just looking for reasons to reject claims and trouble the beneficiaries.