Non-payment of interest on PF money.
I have retired from the service of a PSU in the month of May 2011 and did not withdraw my PF accumulations from my organisation till this month i.e. October 2016. Recently when I went to my erstwhile office to know the accumulations of my PF amount, I was informed that as per PF Act interest up to three years from the date of employee's retirement will be paid and thereafter no interest will be paid on the PF amount. Accordingly interest up to May 2014 was credited to my PF account. Thus I am deprived of earning interest on the PF amount to the extent of more than Rs. 5 lakhs for the period from June 2014 to October 2016 i.e. for 29 months which is a huge loss to me particularly at this age.
I feel that the PF Trust of my office which manages the PF accumulations of employees, instead of simply sitting, should have taken steps to refund the PF accumulations soon after the Fund ceases to earn interest by sending the cheque drawn in favour of the retired employees or at least should have communicated the fact to the retired employees.
I feel that if the PF Act prohibits payment of interest after three years from the date of retirement at the rate at which such interest was paid to other employees, at least the PF Trust should pass on the interest which it has earned from the Bank on my PF amount.
There may be several cases like me. Views please.
C. Narsing Rao more
I feel that the PF Trust of my office which manages the PF accumulations of employees, instead of simply sitting, should have taken steps to refund the PF accumulations soon after the Fund ceases to earn interest by sending the cheque drawn in favour of the retired employees or at least should have communicated the fact to the retired employees.
I feel that if the PF Act prohibits payment of interest after three years from the date of retirement at the rate at which such interest was paid to other employees, at least the PF Trust should pass on the interest which it has earned from the Bank on my PF amount.
There may be several cases like me. Views please.
C. Narsing Rao more
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View all 11 comments Below 11 comments
As per the rule you have got the interest, so don't delay further in settling the account and earn some return by investing the money some where else. more
Nov 05
In this there are two points 1. He should have withdrawn the amount. But he might have though that it will get interest. 2. At the mean time the PF could have send a letter as service that your account is going to be 3 years further no interest will be credited. Now a days Government should act pro actively for the welfare of the citizens more
Oct 31
It is the correct reply. No point in pursuing further. Sent from my Windows Phone ________________________________ From: Chittimilla Narsing Rao Sent: ý10/ý30/ý2016 8:48 AM To: abraham.v@outlook.com Subject: New post "Non-payment of interest o..." in [myEPF] more
Oct 30
Sir, I am very sorry to say that one cannot act smartly. Why did you not withdrew your PF accumulations on superannuations? It was evident that at that you did not require money, you opted to continue with EPFO/PF TURST as the case may be, s the interest paid was higher. Now you want to withdraw it, but the interest on your accumulation was paid up to 2014 and thereafter the interest was not paid. It is a lapse on your part for not withdrawing it immediately after completion of three years. You are not at all deprived. Better not to make hue and cry? more
Oct 30
Further, I also feel partly the lapse on you also with great respects to you for being elderly person , that it is our duty to enquire with PF Trust or Authorities whether we can continue to keep our money without withdrawal, if so how long we can keep and must get to know rules and regulations on such issues well in advance. Nevertheless, now it is over, you should meet personally PF authorities and PF trust people and get whatever maximum u can get and plan for immediate withdrawal of entire amount without further delay. With best wishes to you. regards more
Oct 30
