New rules have come for withdrawing money from EPFO. The board has decided to change the EPS withdrawal rules. This is great news for those employees who want to withdraw money even after 6 months of service. The CBT has recommended the government to make necessary changes in the EPA-95 plan.
A new rule has come to withdraw money from EPFO, which is beneficial for you. It is also important for you to know this. The Central Board i.e. CBT has recommended to the government that changes should be made in the EPS withdrawal rules. This is great news for the employees who are going to retire in the next 6 months.
The CBT has recommended the government to make necessary changes in the EPA-95 plan. It is believed that when the retirement benefit is fixed, the retiring employees will get more benefits. On Monday, the Employee Provident Fund Organization has announced some new changes to withdraw money. According to the new rules, an employee can withdraw money even 6 months before retirement.
The Employees’ Provident Fund Organization (EPFO) has announced a significant change on Monday. Now how can customers withdraw their savings amount? Employees Pension Scheme 1995 (EPS-95) deposits can now be withdrawn by subscribers even with less than six months service as per the decision taken by EPFO.
At present, only EPFO members who have less than six months of service left can withdraw the amount deposited in an employee’s provident fund account. The Central Board of Trustees in its 232nd meeting, chaired by Union Labor Minister Bhupendra Yadav, the highest decision-making body of EPFO, recommended changes to the existing EPS-95 scheme to the government. The board has advised the government regarding the extension of EPS withdrawal benefit to the members who are going to retire in six months.
The board has also suggested that the participants who have deposited the amount in the scheme for more than 34 years should be given proportionate pension benefits. As a result, when the retirement benefit is fixed, the retirees will get a higher pension.
According to the statement, the board has recommended that it is possible to determine the value of equitable transfer whenever exemption from EPS-95 is granted or cancelled. It has an exchange-traded fund (ETF) unit investment policy that has been approved. The board also gave its approval for transactions of ETF units purchased in 2018 to capture capital gains.
The documents authorized to submit this audit report to Parliament include audited annual accounts for the financial year 2020-21 as per the Employees’ Deposit Link Insurance (EDLI) Scheme 1976, EPS Scheme 1995 and EPF Scheme 1952.
