News Inoperative provident fund a/cs to earn interests from April 1

[Deepu]

National retirement fund body Employees Provident Fund Organisation has decided to give interests on inoperative PF accounts with effect from April 1, 2016, reversing a key decision of the previous UPA government in 2011.

The move will benefit millions of organised sector employees who will start receiving interest payments on their inoperative employees provident fund savings amounting to a total of close to Rs 32,000 crore. Inoperative EPF accounts are those where there have been no ..

Read more at:
Inoperative provident fund a/cs to earn interests from April 1 - The Economic Times

 

[IndianMascot]

Whose gonna benefit from this?

 

[Deepu]

Whose gonna benefit from this?

many people who have PF account which is not operative

 

[IndianMascot]

But how they will take the benefit if they are not operating it

 

[Deepu]

But how they will take the benefit if they are not operating it

on someday when they remember that they had PF account and if they close it then only they will benefit

 

[DashMajor]

I didn't got anything about this scheme.

 

[Deepu]

I didn't got anything about this scheme.

Let me explain a bit

You are with company A - and PF account is active and contribution is made
Now you left company A & joined company B - you didn't transfer old PF account, but created new PF account in company B

Now no contribution is being made to your PF account with company A and hence it will be inoperative. EPFO had decided to not credit interest to PF accounts which are not being operated for more than 3 years. Now they have reverted back the decision

 

[DashMajor]

Let me explain a bit

You are with company A - and PF account is active and contribution is made
Now you left company A & joined company B - you didn't transfer old PF account, but created new PF account in company B

Now no contribution is being made to your PF account with company A and hence it will be inoperative. EPFO had decided to not credit interest to PF accounts which are not being operated for more than 3 years. Now they have reverted back the decision

We can hold as many PF as we can ?

 

[Deepu]

We can hold as many PF as we can ?

Previously we could open new PF account whenever you switch the company. Now with UAN, it will not be possible

 

[DashMajor]

Previously we could open new PF account whenever you switch the company. Now with UAN, it will not be possible

So why Govt. is not merging PF accounts rather then bringing this rules.