A new regulation on PF withdrawal - if not withdrawn at age 54, wait till 57
Posted on: 28/Feb/2016 7:46:07 PM
A new Provident Fund withdrawal regulation is being introduced.If provident Fund is not withdrawn at the age of 54, then the concerned PF subscriber will have to wait till the age of 57 to withdraw PF.
For the employees working in various organisations, a certain amount is taken from the monthly salary for Employees (future) Provident Fund.This amount can be withdrawn while the employees retire.
Apart from this, there is a facility to take loans from the Provident Fund for important expenses such as buying/constructing a house, Children`s education, etc.In this scenario, a new regulation on withdrawal from PF is shortly being introduced.
A EPFO (Employee Provident Fund Organisation) official explained that PF subscribers were using the PF for children`s education, buying a house, etc. However, with the new regulation proposed to be introduced, they can take these loans only before the age of 54.
If the PF subscriber crossed the age of 54, the subscriber cannot withdraw any PF amount till reaching 57 years of age.The subscriber can draw PF only after reaching 57 years of age.
The ministry of Labour welfare has notified regarding this.This new regulation is set to be introduced shortly.PF circles mention that this regulation will apply to investors in the Varishta Pension Bhima Yojana as well.
The system of allowing the withdrawal of entire PF is being grossly misused.The procedures are brought in place to ensure that the employees will get the benefit of taking the money during their old age and also to ensure social welfare.
It is expected that these new regulations will reduce the number of applications for PF money withdrawal.While retiring from the job, there are no restrictions. Full PF amount can be withdrawn.
