By | Nanjegowda
Please refer herewith enclosed ” Latest Amendments in PF and EDLI ” for your professional reference.
Summarised version of the four attachments:
- Amendment to Para 26A etc: Pertains to withdrawal. Under Para 68NN, a member had the option to withdraw upto 90% of total accumulations one year before superannuation or 54 years. By this amendment, 54 years is replaced by 57 years. A new Para 68NNNN has been inserted by which if an employee ceases working, then if not employed for more than 2 months continuously, can withdraw 90% of his/her contribution with interest. This 2 month waiting period does not apply to a female member who has ceased employment for marriage, pregnancy or child birth. Finally, under Para 69, the full amount in that member’s account could have been withdrawn on retirement after attaining 55 years. 55 years is now replaced by 58 years. No member would withdraw because they would stand to lose out employer contribution.
- Applying to banks: Will apply to all banks who employ 20 or more if they were not covered under Contributory Provident Fund or any other similar scheme.
- Introducing Incentive Refund Scheme: This modified scheme encourages employers to comply with seeding all details of employees by providing Form 11, Aadhar, bank details, UAN activation etc. This scheme, introduced for the calendar year 2016, refunds 10% or 5% of admn. charges if the employer attains, at the end of every quarter, a certain % of seeding all details of employees is maintained.
- ICICI policy in lieu of EDLI: The ICICI Pru-Group Term Plus policy has been approved by the PF as a policy if EDLI exemption is sought. This is in addition to other insurance policies issued by LIC, Kotak etc.