EPFO Plans Quick Settlement of Claims
Retirement fund body EPFO is planning to settle all claims, such as transfer and withdrawal of provident funds, within three days. This move will benefit over one crore claimants every year.
In order to give effect to the proposal for expeditious settlement of claims, the Employees' Provident Fund Organisation (EPFO) has called a meeting of all zonal heads on July 5 to draw an action plan.
The body is expecting 1.2 crore claims in the current fiscal and hopes that if around 70 percent of those are settled in three days, about 84 lakh claimants would benefit.
Quick settlement of claims, EPFO stated in an officer order, "was necessary to improve the image of the organisation."
EPFO has already launched a Pendency Clearance Drive to settle all claims received before June 15 this year. As many as 5,38,704 claims were pending as of June 11 this year.
"In 2012-13, the body settled 1.08 crore claims, out of which 12.62 lakh claimants were dissatisfied as their claims were not settled within 30 days. Moreover, 1.41 lakh claims not settled even after 90 days have brought down the image of the EPFO among our members," the order stated.
It further said, "Customers expect a change in the mindset from 30 days (maximum period for settlement of claims) to at least three days in the computerized era for withdrawing their own money."
The body is also in the process of introducing a facility where claimants would be able to apply online for the transfer and withdrawal of their PF from July 1.
EPFO is setting up a central clearance house, which will be operational on July 1. This will enable subscribers to apply online for the settlement of withdrawal and transfer of funds claims.
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From India, Mumbai
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2584Retirement fund body EPFO is planning to settle all claims, such as transfer and withdrawal of provident funds, within three days. This move will benefit over one crore claimants every year.
In order to give effect to the proposal for expeditious settlement of claims, the Employees' Provident Fund Organisation (EPFO) has called a meeting of all zonal heads on July 5 to draw an action plan.
The body is expecting 1.2 crore claims in the current fiscal and hopes that if around 70 percent of those are settled in three days, about 84 lakh claimants would benefit.
Quick settlement of claims, EPFO stated in an officer order, "was necessary to improve the image of the organisation."
EPFO has already launched a Pendency Clearance Drive to settle all claims received before June 15 this year. As many as 5,38,704 claims were pending as of June 11 this year.
"In 2012-13, the body settled 1.08 crore claims, out of which 12.62 lakh claimants were dissatisfied as their claims were not settled within 30 days. Moreover, 1.41 lakh claims not settled even after 90 days have brought down the image of the EPFO among our members," the order stated.
It further said, "Customers expect a change in the mindset from 30 days (maximum period for settlement of claims) to at least three days in the computerized era for withdrawing their own money."
The body is also in the process of introducing a facility where claimants would be able to apply online for the transfer and withdrawal of their PF from July 1.
EPFO is setting up a central clearance house, which will be operational on July 1. This will enable subscribers to apply online for the settlement of withdrawal and transfer of funds claims.
Regards
From India, Mumbai
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While any process improvements in the PF office are certainly welcome, I think the government should find out why employees go for withdrawal when switching their jobs. The PF account is being treated as their RD (Recurring Deposit account), as is generally done with banks. The very purpose of retirement benefits is defeated by the withdrawal of PF. Hence, when a person retires, they practically have no corpus left for purchasing any meaningful annuity for their retirement life.
I would welcome members' opinions on this issue.
From India, Mumbai
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I would welcome members' opinions on this issue.
From India, Mumbai
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