Big decisions were taken in the meeting
EPFO has abolished the old 13 difficult rules and has now made rules for partial withdrawal in only three categories. Which includes essential needs like illness, education, marriage, housing needs, house related expenses and special circumstances. Now members will be able to withdraw the entire amount present in their PF account.
- Withdrawal limit for marriage- Earlier only 3 withdrawals were allowed for education and marriage, but now 10 withdrawals can be made for education and 5 times for marriage. Apart from this, the minimum service period has also been reduced to 12 months, which was earlier different for different needs.
- Facility to withdraw money- Earlier, in special circumstances like natural disaster, unemployment, epidemic, reasons for withdrawal had to be given, due to which many times the claims were rejected. Now we have got rid of this hassle. Members will get the facility of withdrawal in special circumstances without assigning any reason.
- 25% minimum limit- EPFO has also ensured that 25% amount always remains as minimum balance in the members’ account. With this, members will continue to get the benefit of interest rate of 8.25% and compound interest, which will enable them to create a substantial fund for retirement.
- Auto settlement system- There will be no need to submit any documents under the new rules. There are preparations to completely automate the withdrawal process, due to which claims will be settled faster. Also, the period for premature final settlement has been increased from 2 months to 12 months and the period for pension withdrawal has been increased from 2 months to 36 months.