PF Final Settlement - Q & A Forum

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MBMAKHIJA asked 7 years ago

I received my final settlement EPF Amount on 21/05/2019 Interest was paid till 31/03/2018. My last EPF contribution was for 01/2015.I left my job in November 2014.Final Settlement was done in December 2014 by my Employer.PF contribution for November 2014 was done in January 2015 Thereafter there are no contributions to EPF Account.From the EPF Passbook I could see interest was regularly updated for 2014-2015,2015-2016, 2016-2017 and 2017-2018. I submitted online Withdrawal Claim on 22.04.2019 and same was settled on 17.05.2019 and bank account credited on 21.05.2019.I have not received Interest for the Financial Year 2018-2019 and April 2019. I shall be completing 58 years in 2019.DOB 07.08.1961. As I read that EPFO is supposed to pay interest upto the completion of 58 years of member even if the account becomes Dormant. Since there are no contributions for more than 36 months I presume my account became Dormant. Kindly let me know whether I am entitled to receive the interest for 2018-2019 and April 2019. Thanks Mahesh Makhija E-mail :maheshmakhija**@gmail.com

4 Answers

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Sreekanth Staff answered 7 years ago

Dear Mahesh ji, As per the EPFO, the retirement age of an EPF member is fixed as 55 years of age and your understanding is correct that the interest on EPF account is paid for 3 more years (55 + 3 years). Suggest you to kindly submit your grievance about the non-credit of interest for the last FY to the EPFO via this link .. You may go through below articles;

MBMAKHIJA replied 7 years ago

I received the following response on my grievance lodged on EPFiGMS
This is with reference to your Grievance registered vide Registration Number MHKND/E/2019/05180.
It is informed that after processing your grievance,the following action(s) has been taken:
Sir,you left your service under account no KDMAL00455100000000160 on 01/12/2014.Subsequently no contribution was received from Dec.2014 and your account was classified as unclaimed deposit account w.e.f.01/12/2017(i.e.due to non receipt of contribution for 3 years).As per rule interest is not credited to unclaimed deposit account and hence you were not paid interest for the year 2018-2019.

Therefore, we are closing your grievance from this office.Please quote the same in your future correspondence.

EPFO has considered 36 months of non contributory from date of exit 0112/2014.They have classified my Account as UDA after December 2017.
They should be aware of November 2016 amendment. I feel EPFO is taking my retirement from 01.12.2014, last contribution.
My running age in December 2014 was 54 Years. Date of birth 07.08.1961.

Is there any chance I can get my Due interest for 2018-2019. GOI should not take advantage in the welfare schemes for betterment of employees. Please guide me.

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Sreekanth Staff answered 7 years ago

Dear Sir, Yes, EPFO should have considered the latest amendment regarding In-operative accounts. You may re-open the grievance request and highlight the notification and check what they have to say..

MBMAKHIJA replied 7 years ago

Dear Sir,
I visited the Regional Office yesterday and discussed the issue with officer. On cessation of employment, I had completed 53 years and 54 year was running. I informed him as per circular 55 years is date of retirement as per EPFO and thereafter 36 months upto 58 years age interest is payable.
My concern section officer was on leave. I will be going again next week to take up the issue.
What do you think or how should the amendments be read in my case. Cessation of employment should be taken as left the job to pursue personal hobby. Kindly help me how to go forward and represent my case, taking November 2016 circular as base. Till date I have not applied for EPS /Pension.

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Sreekanth Staff answered 7 years ago

Dear Sir, Your understanding is correct and I agree with your views. Also, the amendment to In-operative PF accounts was ratified in the FY 2016-17 (wef 11-11-2016). So, there is no concept of Dormant EPF accounts and the interest is payable even for dormant accounts from April 2016 onwards.

MBMAKHIJA replied 7 years ago

Thanks for your guidance.
Officer whom I spoke was very clear that Member’s Account becomes UDA after 36 months of No contributions being credited to Account.
In such UDA, EPFO stops crediting interest. This means they are still considering such account as Dormant.
This shows 11.11.2016 amendment circular is being ignored/by passed. According to your view there is no concept of dormant accounts after April 2016 onwards.
I feel one needs to file PIL to clear all ambiguity and technical issues.
I will go coming Tuesday for this matter to R. O. Kandivali 2,Mumbai. I shall be obliged if you could mail me the entire Circular.
Thanks

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Sreekanth Staff answered 7 years ago

Dear Sir, You may refer to the below link : http://egazette.nic.in/WriteReadData/2016/172597.pdf

MBMAKHIJA replied 7 years ago

Thanks for your support and concern.

I shall be obliged if you provide any input from your side to present my case with Regional Office, Kandivali II for agreeing to pay me interest for 2018-2019 and upto PF Final Settlement.

EPFO are aware of the circular. Only hitch is the interpretation of the same in true spirit for welfare of members benefits.