An Act to provide for the institution of provident funds, family pension funds and deposit linked insurance fund for the employees in the factories and other establishments.
Employees' Provident Fund Scheme takes care of following needs of the members:
Retirement
Medical Care
Housing
Family obligation
Education of Children
Financing of Insurance Polices
Benefits:
A member of the provident fund can withdraw full amount at the credit in the fund on retirement from service after attaining the age of 55 years. Full amount in provident fund can also be withdraw by the member under the following circumstances:
A member who has not attained the age of 55 year at the time of termination of service.
A member is retired on account of permanent and total disablement due to bodily or mental infirmity.
On migration from India for permanent settlement abroad or for taking employment abroad.
In the case of mass or individual retrenchment.
In the case of the following contingencies, the payment of provident fund be made after complementing a continuous period of not less than two months immediately preceding the date on which the application for withdrawal is made by the member:
Where employees of close establishment are transferred to other establishment, which is not covered under the Act:
Where a member is discharged and is given retrenchment compensation under the Industrial Dispute Act, 1947.
Withdrawal before retirement:
A member can withdraw up to 90% of the amount of provident fund at credit after attaining the age of 54 years or within one year before actual retirement on superannuation whichever is later. Claim application in form 19 may be submitted to the concerned Provident Fund Office.
Accumulations of a deceased member:
Amount of Provident Fund at the credit of the deceased member is payable to nominees/ legal heirs. Claim application in form 20 may be submitted to the concerned Provident Fund Office.
Transfer of Provident Fund account:
Transfer of Provident Fund account from one region to other, from Exempted Provident Fund Trust to Unexampled Fund in a region and vice-versa can be done as per Scheme. Transfer Application in form 13 may be submitted to the concerned Provident Fund Office.
Nomination:
The member of Provident Fund shall make a declaration in Form 2, a nomination conferring the right to receive the amount that may stand to the credit in the fund in the event of death. The member may furnish the particulars concerning himself and his family. These particulars furnished by the member of Provident Fund in Form 2 will help Organizations in the building up the data bank for use in event of death of the member.
Annual Statement of account:
As soon as possible and after the close of each period of currency of contribution, annual statements of accounts will be sent to each member through of the factory or other establishment where the member was last employed. The statement of accounts in the fund will show the opening balance at the beginning of the period, amount contribution during the year, the total amount of interest credited at the end of the period or any withdrawal during the period and the closing balance at the end of the period. Member should satisfy themselves as to the correctness f the annual statement of accounts and any error should be brought through employer to the notice of the correctness Provident Fund Office within 6 months of the receipt of the statement.
