Dear Mr. Kumar S.,
I wish to thank you for appreciating my suggestion of online facilities for the members. I will just add that all bank transactions are online, but the same are with the security of the software system. With the introduction of EPS, the government needs a surplus amount to discharge pensionary liabilities, which can be feasible when the full amount is remitted to EPFO. I would suggest that people like you can make a voluntary association to raise the voice of justice for the common deserving man. I will support you for this good cause.
Regards,
srivastavacmlalatgamildotcom
From India, New Delhi
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126I wish to thank you for appreciating my suggestion of online facilities for the members. I will just add that all bank transactions are online, but the same are with the security of the software system. With the introduction of EPS, the government needs a surplus amount to discharge pensionary liabilities, which can be feasible when the full amount is remitted to EPFO. I would suggest that people like you can make a voluntary association to raise the voice of justice for the common deserving man. I will support you for this good cause.
Regards,
srivastavacmlalatgamildotcom
From India, New Delhi
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Dear Mr. Kumar S.,
I have some queries regarding PF withdrawal from a trust as follows:
1. How to withdraw the PF amount from a trust.
2. Under what circumstances can an employee withdraw their PF amount as a loan/advance?
3. What is the minimum duration of job period required for withdrawing the PF amount from the trust?
4. Which form is required to withdraw the PF amount from a trust?
5. What percentage of an employee's contribution can be taken as a loan/advance?
6. If it is a loan, how much interest should be paid?
Kindly clarify my doubts and suggest if there are any books or links available on the internet for more knowledge regarding the above subject.
Regards,
SENAPATI
From India, Bhubaneswar
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I have some queries regarding PF withdrawal from a trust as follows:
1. How to withdraw the PF amount from a trust.
2. Under what circumstances can an employee withdraw their PF amount as a loan/advance?
3. What is the minimum duration of job period required for withdrawing the PF amount from the trust?
4. Which form is required to withdraw the PF amount from a trust?
5. What percentage of an employee's contribution can be taken as a loan/advance?
6. If it is a loan, how much interest should be paid?
Kindly clarify my doubts and suggest if there are any books or links available on the internet for more knowledge regarding the above subject.
Regards,
SENAPATI
From India, Bhubaneswar
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Dear friend Senapathy,
As I explained in my brief, The Exempted Trust is governed by a set of Bye-Laws styled on the lines of the PF Act & Rules. Some Trusts, on a few occasions, may overlook certain regulatory provisions to grant loans (refundable). These Bye-Laws are supposed to be printed and circulated in a booklet form to the employees, where formats are also appended. The Trusts themselves have to print all applicable forms for loans, withdrawals, transfers, nominations, etc., and issue them to the members. There are hardly any changes when compared to the formats prescribed in the Act. Conditions and eligibility are also as per the Act/Rules only. You can download all these forms from this link:
[Download All Provident Fund (PF/EPFO) Forms here | Provident Fund Forms](http://www.downloadformsindia.com/Provident-Fund-Forms/download-all-provident-fund-pf-epfo-forms-here.html)
All eligible employees/members can apply to the Trust for a grant of a loan or withdrawal when they leave, subject to reemployment. But while disbursing the loan, the availability of funds in the Trust account should be adequate for the simple reason that the Trust is legally bound to maintain the quantum of investments as prescribed in the Exemption orders/Act. These investments are normally long-term (locked up) government or PSU securities and bonds maturing after, say, 15, 20, 25 years. Thus, for immediate cash requirements to disburse loans and withdrawals, Trusts used to struggle. If the proportion of investment is not maintained, then the "exemption given to Trust" could be withdrawn.
As I said, Trusts have to invest in approved securities and bonds with a rate of interest of, say, 9% or 8.5% or whatever was prevailing at the time of investment. This interest is mostly realized every year, which forms "Funds in flow" of the Trust. From this inflow, the Trust has to meet interest credit, loans, withdrawals, and transfers. For the loans, the Trust used to add, say, 1% or more or less over and above the interest declared by the EPFO for that year, say 8.5% (8.5 + 1 = 9.5% per annum), and recover the EMI through salary. Supposing most of the investments made were yielding less interest, say 7.5% or 8%, there is bound to be some imbalance vis-a-vis the declared interest to be credited to members' accounts (8% - 8.5% is a 0.5% deficit, which has to be made good by the employer directly to the Trust (apart from meeting the costs of running the Trust, say salary to staff, printing and stationery, inspection charges payable to RPFC, etc.). To avoid all these headaches, most employers do not prefer to go for seeking Trust approval.
For your guidance, use this link to download the EPF Act.:
[EPF Act](http://www.vakilno1.com/bareacts/employeepfact/employeepfact.html)
Regards and thanks,
kumar.s.
From India, Bangalore
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As I explained in my brief, The Exempted Trust is governed by a set of Bye-Laws styled on the lines of the PF Act & Rules. Some Trusts, on a few occasions, may overlook certain regulatory provisions to grant loans (refundable). These Bye-Laws are supposed to be printed and circulated in a booklet form to the employees, where formats are also appended. The Trusts themselves have to print all applicable forms for loans, withdrawals, transfers, nominations, etc., and issue them to the members. There are hardly any changes when compared to the formats prescribed in the Act. Conditions and eligibility are also as per the Act/Rules only. You can download all these forms from this link:
[Download All Provident Fund (PF/EPFO) Forms here | Provident Fund Forms](http://www.downloadformsindia.com/Provident-Fund-Forms/download-all-provident-fund-pf-epfo-forms-here.html)
All eligible employees/members can apply to the Trust for a grant of a loan or withdrawal when they leave, subject to reemployment. But while disbursing the loan, the availability of funds in the Trust account should be adequate for the simple reason that the Trust is legally bound to maintain the quantum of investments as prescribed in the Exemption orders/Act. These investments are normally long-term (locked up) government or PSU securities and bonds maturing after, say, 15, 20, 25 years. Thus, for immediate cash requirements to disburse loans and withdrawals, Trusts used to struggle. If the proportion of investment is not maintained, then the "exemption given to Trust" could be withdrawn.
As I said, Trusts have to invest in approved securities and bonds with a rate of interest of, say, 9% or 8.5% or whatever was prevailing at the time of investment. This interest is mostly realized every year, which forms "Funds in flow" of the Trust. From this inflow, the Trust has to meet interest credit, loans, withdrawals, and transfers. For the loans, the Trust used to add, say, 1% or more or less over and above the interest declared by the EPFO for that year, say 8.5% (8.5 + 1 = 9.5% per annum), and recover the EMI through salary. Supposing most of the investments made were yielding less interest, say 7.5% or 8%, there is bound to be some imbalance vis-a-vis the declared interest to be credited to members' accounts (8% - 8.5% is a 0.5% deficit, which has to be made good by the employer directly to the Trust (apart from meeting the costs of running the Trust, say salary to staff, printing and stationery, inspection charges payable to RPFC, etc.). To avoid all these headaches, most employers do not prefer to go for seeking Trust approval.
For your guidance, use this link to download the EPF Act.:
[EPF Act](http://www.vakilno1.com/bareacts/employeepfact/employeepfact.html)
Regards and thanks,
kumar.s.
From India, Bangalore
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Dear friend,
The government needs funds not only to meet pensionary commitments but also to divert EPFO's funds to various investments, which were not there earlier. And to partly offset the fiscal deficit as well, if what they say at the Central Board of Employees PF is true.
Kumar S.
From India, Bangalore
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The government needs funds not only to meet pensionary commitments but also to divert EPFO's funds to various investments, which were not there earlier. And to partly offset the fiscal deficit as well, if what they say at the Central Board of Employees PF is true.
Kumar S.
From India, Bangalore
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I am working in an infrastructure company. The employer is regularly deducting PF from my salary, but for the last year, they have not been depositing the same into my EPF account. I have transferred my previous company account, and I need money/loan from my EPF account. Can anybody guide me on how I can avail this loan?
Furthermore, since my basic is more than 15,000/-, can I change my consent for the deduction of PF at this juncture? The employer is very adamant and reluctant to remit the deducted PF amount.
From India
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Furthermore, since my basic is more than 15,000/-, can I change my consent for the deduction of PF at this juncture? The employer is very adamant and reluctant to remit the deducted PF amount.
From India
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Since you are an existing member, you cannot opt out of PF. You should continue contributing. Regarding remittances and recovery, the PF authorities will take care of it, and there are measures to recover the amounts from the employer.
Madhu.T.K
From India, Kannur
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Madhu.T.K
From India, Kannur
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Thank you, Madhu T. K. I want a loan from my EPF account to meet some personal requirements. I am unable to put in a loan request due to irregularities in my PF account (non-payment of contributions by the employer). Can I reduce the contribution amount?
From India
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From India
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If you are contributing over and above the statutory limit, such as on salary over Rs 6500, then you can reduce it to 12% of the statutory limit, which is now Rs 15000. However, contributing less than that is not permissible.
Madhu.T.K
From India, Kannur
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Madhu.T.K
From India, Kannur
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I am narrating a case regarding Non-remittance of deducted PF from an employee's salary:
Company is deducting PF from the employee's salary. The employee has opted for transferring savings from a previous EPF account to the current account. The current employer is not depositing the deducted PF since the employee submitted this transfer application (13 months over). The previous employer has duly stamped, signed, and returned the transfer application to the current employer. The employee doesn't know if the same is submitted to EPFO.
How can the employee verify that the amount is transferred to the current employer's EPF account and not withdrawn by anyone else by using the procedure available for the withdrawal of PF by taking the Bank manager's or PF commissioner's signature? The account has not been updated for the last 13 months by EPFO due to non-remittance.
Furthermore, how can the employee get this amount deposited into his account without the current employer's knowledge? In the past, EPFO officials had revealed the person's name who has expressed his grievances through the EPFO portal. What about the interest loss on this account? How can the lost interest on this amount be recovered?
From India
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Company is deducting PF from the employee's salary. The employee has opted for transferring savings from a previous EPF account to the current account. The current employer is not depositing the deducted PF since the employee submitted this transfer application (13 months over). The previous employer has duly stamped, signed, and returned the transfer application to the current employer. The employee doesn't know if the same is submitted to EPFO.
How can the employee verify that the amount is transferred to the current employer's EPF account and not withdrawn by anyone else by using the procedure available for the withdrawal of PF by taking the Bank manager's or PF commissioner's signature? The account has not been updated for the last 13 months by EPFO due to non-remittance.
Furthermore, how can the employee get this amount deposited into his account without the current employer's knowledge? In the past, EPFO officials had revealed the person's name who has expressed his grievances through the EPFO portal. What about the interest loss on this account? How can the lost interest on this amount be recovered?
From India
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Sir, I applied for my PF in February this year and I received my UAN number and passbook. However, despite submitting all the required documents for withdrawing the amount, I have not yet received any funds in my personal account. Every time I call the office, they inform me that my documents are incomplete. On another occasion, they claim that I have not submitted the necessary documents. This cycle of excuses has been ongoing for over 7 months. What can I do in this case? Please help me.
From India, Gurgaon
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From India, Gurgaon
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