The central government is considering providing better social security to the elderly after retirement. Under this, employees associated with the Employees’ Provident Fund Organization (EPFO) can be given the option to convert their PF funds into pension.
If this rule is implemented, the employees will benefit a lot. As soon as the rule is implemented, employees will be able to get the benefit of more pension after retirement. It is expected that the government can make this big announcement regarding social security in the budget to be presented this year.
Let us tell you that the country’s general budget will be presented a few days from now, i.e. on February 1. It is expected that in this budget the government can announce some rules related to social security. According to media reports, on the instructions of the Government of India, the Ministry of Labor and Employment has already started working on the rules related to social security. If employees get the option to convert their PF funds into pension, then they can get more pension after retirement by putting their deposited amount in the pension fund.
You can convert PF funds into pension
By converting PF funds into pension, employees will be able to get better financial security in old age after retirement. Information has also come to light that the central government is thinking of changing the PFO system to make it like banking. By doing this, people will start getting banking facilities in the PFO system. The purpose of these facilities is to strengthen the social security of employees after retirement.
These benefits can be found in the new rules
Interest will be received after retirement
If an employee feels at the time of retirement that he has other sources of income and he does not want to take pension at the age of 58, then he can get the option of 60-65 or any other age to start pension. During this time, annual interest will continue to be received on the amount deposited in the pension fund.
Facility to deposit lump sum amount is available
According to reports, the ministry aims to allow EPFO members to deposit a lump sum amount in their account along with regular monthly contributions. This option has been under consideration by the government for a long time, but no consensus has been reached yet. If the government provides this facility, it will lead to more contributions being deposited in the PF account and employees will be able to get a better pension after retirement.
You can get exemption in income tax
The ministry says that many people do not get FD done in banks because the interest rate there is less than 7 percent. In comparison, the amount deposited in the PF account earns more than 8 percent interest. If people are given the facility to deposit lump sum money in the PF account, then they can start investing in it for their future security.
Related Articles:-
- Budget Expectations: Senior citizens will get 50% discount on tickets of Express, Rajdhani, Shatabdi trains!
- SBI Har Ghar Lakhpati Scheme – Get 1 lakh , You only need to invest 591 rupees
- Work New visa rules: Saudi Arabia govt implements stricter work visa rules for overseas workers from Today
- Big danger for those who transact using UPI! SBI issues warning
- Public Holiday: Government has declared a holiday tomorrow in all schools, colleges and government offices
