New Delhi, Jan 25: The retirement fund body or the EPFO plans to hold back about 10% of the user's money till the age of 50. This has been done to discourage the trend of withdrawal of the entire amount before their superannuation.
Central Provident Fund Commissioner K K Jalan has sought a proposal for discouraging complete withdrawal of provident fund by members before their retirement. He said,"...submit a proposal wherein the employees' complete balance should be permitted for final withdrawal only on superannuation or on other special contingencies so identified."
During a meeting earlier this month, the commissioner said that for taking care of other contigencies of members during service history, the facility of part-withdrawal can be revised. He further explained,"In such (pre-mature withdrawal) cases, only up to 90 per cent of the amount should be released and 10 per cent of the money should be retained to remain with the same Universal (PF) Account Number when he/she comes back again."
It is also believed that once the UAN is stabilised, there will be lesser premature withdrawals. The UAN enables the collation of accounts and viewing of updated PF accounts online. It is portable throughout the working careers of members and can be used anywhere in India.
Thus, workers in the organised sector having UAN are not required to apply for a transfer of their PF account claim on changing jobs.