Pension regulator makes provision for partial withdrawal under NPS
The Pension Fund Regulatory and Development Authority (PFRDA) on Thursday said that it has made modification in partial withdrawal rules under the National Pension System (NPS).
 
According to PFRDA, partial withdrawals will now be allowed to NPS subscribers who wish to improve "their employability or acquire new skills by pursuing higher education or acquiring professional and technical qualifications". 
 
"Further, individual NPS subscribers who wish to set up a new business or acquire new business will also be allowed to make partial withdrawals from his contributions. Other terms applicable to partial withdrawals will remain unchanged," PFRDA said in a statement on Thursday.
 
PFRDA took the decision in its recently-held Board meeting.
 
Besides, the pension regulator has increased cap on equity investment in "active choice to 75 per cent from current 50 per cent for private sector subscribers".
 
Presently, there is a cap of 50 per cent on equity investment under active choice in NPS. 
 
"The proposal on increasing cap on equity investment in active choice to 75 per cent from currently 50 per cent has been approved by the Board. However, it comes with a clause of tapering of the equity allocation after the age of 50 years," the statement said.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
 

 

  • User

    COMMENTS

    Mr Jitendra

    1 year ago

    Wrong decision, absent minded policy. Using retirement funds for business and education? Most of the developed world has separate tracks for achieving this. Babies born in USA their parent can open 529 plan which is total tax free. The maturity proceeds from age 16 onwards can be used to fund the child's education. Anyone can contribute in the child's education fund. Eg maternal grandpa, paternal grandma or uncle or aunt. Allowing NPS pension to get used in some other purpose other than retirement is something not correct.

    Pensioners not required to be physically present in bank for life certificate
    November is the month for all pensioners to provide life certificates to their bank so that they would continue to receive their pension. While most the these senior citizen visit bank branches during November and sign on the register as proof of living, some find it difficult to be physically present for this. This usually means a lot of trauma for elders who are not in good health or too old to make it physically to their bank branches. 
     
    The government has taken steps to end the pain of this process, however, many pensioners and their care-givers are unaware of it. Therefore, here is what you can do. 
     
    Pensioners who are unable to go to bank branches themselves can submit a physical copy of their life certificate or use a digital certificate that is issued by Jeevan Pramaan website https://jeevanpramaan.gov.in/. A pensioner can submit Aadhaar-based online life certificate through the Jeevan Pramaan website. A successful authentication generates digital life certificate that gets stored in the Life Certificate Repository, which can be accessed by the pension disbursing agencies on-line. But more about it later.
     
    An office memorandum, issued by the Central Pension Accounting Office, under the Ministry of Finance, clearly says, "...the pension account holding branches of all authorised banks may be instructed to strictly adhere to the existing norms and do not harass the pensioners/family pensioners by insisting upon presenting themselves physically in the bank if their life certificate is submitted duly signed by the authority specified in Correction Slip No.14..."
     
     
    This means, pensioners who are unable to visit their bank branch, can submit a life certificate, duly signed by a Magistrate, a Registrar or sub-Registrar, a Gazetted Officer, a Police Officer no below the rank of Sub-Inspector, a postmaster, a class I officer of the Reserve Bank of India (RBI), a pensioned officer who before retirement exercised powers of a Magistrate, a Justice, a Block Development Officer or Munsif or Tehsildar or Naib Tehsildar, a Head of Village Panchayat, a Member of Parliament or State Legislature or a Treasury Officer.
     
    For pensioners receiving pension through their savings account in a public sector bank, the Officer of the bank can sign the life certificate. However, many a times, such pensioners or their family members find it difficult to submit physical copy of the life certificate. 
     
    (Sample of Life Certificate)
     
    "Pensioners, who are not in a physical condition to visit the branch, can request an officer from the bank to visit their home for signing the certificate. Also such pensioners should get a similar certificate from their doctor and attach it with the life certificate while submitting to the bank branch. Also note the pensioner is required to submit such life certificate and doctor's certificate within 30 days of signing the same by designated officer and the doctor," says Abhay Datar, a retired banker and expert at Moneylife Foundation's Helpline. 
     
    Devidas Tuljapurkar, Joint Secretary of All India Bank Employees Association (AIBEA), also says that pensioners are not required to be physically present at bank branch if they have health related issues. "An official from the bank branch should ideally visit such pensioners and sign the life certificate. However, due to the manpower shortage, this is not possible for the officials to visit homes of pensioners. But they can certainly make the visit after banking hours, in cases, where the pensioner is bed-ridden or not in a condition to move around," he added.
     
    Coming back to the Jeevan Pramaan digital life certificate, which can be obtained through Jeevan Pramaan Centres, banks, government offices or by using an application on computer, mobile (smart phone with fingerprint scanning facility) or tablet.
     
    After downloading the app, the pensioner has to provide necessary information like Aadhaar number, pension payment order, bank account, bank name and mobile number. The pensioner then needs to authenticate herself through fingerprint scanner. 
     
    After a successful authentication, an SMS acknowledgement is sent to the pensioner's mobile number including her Jeevan Pramaan Certificate ID. The pensioner can also download a PDF copy of her life certificate from the Jeevan Pramaan website.
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    User

    COMMENTS

    PRAKASH D N

    9 months ago

    As per RBI directive RBI/2017 -18/89DBR.No.Leg.BC.96/09.07.005/2017-18 November 9, 2017 giving facilities for senior citizens, bank officers have to visit the pensioner at his place where the pensioner is immobile for health reasons and submit the Life Certificate.

    Rajagopalan R Nida

    9 months ago

    My email ID is [email protected]
    My Pension SB a/c no is 4/1295724 at Porur branch,Indian Bank.

    Rajagopalan R Nida

    9 months ago

    My epf pension is paid through Indian Bank, Porur Branch,Chennai.My PPO No is32644.
    from last year the said branch of Indian bank informed all pensioners to go to Tambaram,EPF office. As per above news the branch at porur needs to be instructed to accept my Life Certificate.Even the corporation's E service booths also not accepting.
    A man of 73 years needs to go to tambaram means some harasement to the senior citizen. monthly am getting Rs 800 only

    Sanjoy Acharjee

    10 months ago

    There is a problem in generating digital Life Certificate for pensioner of Assam State Govt. Name of state - Assam is absent from dropdown menu for selection of State. Jeevan Pramaan portal has not yet updated states list adding name of Assam. Aadhar Card barrier is supposed to be removed as Aadhar Enrolment process is going on in Assam for quite a few months back. Jeevan Pramaan authority may be requested to update state names to help aged & ailing pensioners of Assam Govt.

    Sanjoy Acharjee

    10 months ago

    Here in the branch, there is no offline process or form thereof. The bank officer assured of attesting the form if I submit one. But, where to get the firm. Form issued by my PDA Branch in Assam is not as same as one I downloaded from SBI website. This has given rise to doubt as to where an attested Form sent by registered post will ultimately be accepted by Bank because of the form being one other than that the bank has issued to the pensioners. I obtained a photo from my friend there which is not properly printable. Hence. I am confused & require support. Bank Branch (code - 000109) of Karimganj Assam is indisposed to reply queries sent via email. This has put me into some tension. Please show way out.

    Sanjoy Acharjee

    10 months ago

    Here in the branch, there is no offline process or form thereof. The bank officer assured of attesting the form if I submit one. But, where to get the firm. Form issued by my PDA Branch in Assam is not as same as one I downloaded from SBI website. This has given rise to doubt as to where an attested Form sent by registered post will ultimately be accepted by Bank because of the form being one other than that the bank has issued to the pensioners. I obtained a photo from my friend there which is not properly printable. Hence. I am confused & require support. Bank Branch (code - 000109) of Karimganj Assam is indisposed to reply queries sent via email. This has put me into some tension. Please show way out.

    Sanjoy Acharjee

    10 months ago

    I am a pension holder. My PDA is SBI Karimganj Main Branch, Assam. At present, I am temporarily staying in Hyderabad, Telangana. I approached an SBI Branch at SERILINGAMPALLY
    Branch Code 06314 to submit my Life Certificate. In this branch online process is available. I have an Aadhar Card obtained in Kolkata. SBI official took up the task, but in drop down menu, Assam State is not mentioned & there online generation & submission of Life Certificate failed. At present, Aadhar Enrollment is going on in Assam, but Jeevanpramman has not yet incorporated name of Assam as one of the state in drop down, causing utmost problem to me. As a result, I am to go to Home Branch of SBI in Assam to submit my Life Certificate.
    If PPO based Life Certificate can be generated & submitted, it would lessen our tension & more or less 70 hours of journey by train. No offline form was available. What to do at this stage.

    REPLY

    MDT

    In Reply to Sanjoy Acharjee 10 months ago

    Dear Sir,
    As per reply from SBI, a pensioner can submit life certificate at any branch of the Bank.
    Here is the link to the webpage & specific answer provided by SBI...
    https://www.sbi.co.in/portal/web/customer-care/faq-centralised-pension-processing
    20. Where should the pensioner submit his/her life certificate?
    Ans: The pensioner can submit life certificate at any branch of the Bank either in person or through his/her authorized representative. The receiving official will acknowledge receipt of the Life Certificate.

    Kindly show this to the SBI officer at Hyderabad. After checking the details from the above URL, he will accept your life certificate.

    Pradeep Ratnaparkhi

    10 months ago

    I want to know if a person receiving pension from EPFO can go to the concerned branch of the Bank any where in India to present himself as alive?

    Shifali Gupta

    10 months ago

    I am father of shifali gupta and drwaing pension central government. I want to know whether I can submiy life certificate reemployment and re merriage certifiicates before november .pl guide me.

    Manoj

    1 year ago

    Well, digital life certificates are not used by state govts. UP state requires the pensioner to present themselves at the treasury for taking fingerprints. They also do not accept Jeevan Praman. Download Umang app and see for yourself.

    This govt believes in selling dreams and shortchanging people.

    Gem mo

    1 year ago

    please send live certificate link

    PARSHA RAM

    2 years ago

    this is a good move by the authorities concerned.

    k.mohanarangam k.mohanarangam

    2 years ago

    will be a great relief for those
    who are unable to physically
    present/visit the authorities

    N.Hanumanta Rao

    2 years ago

    The above Jeevan Pramaan may also be made applicable to all 5 crore pensioners of Family pension scheme of EPFO.

    S BHASKARA NARAYANA

    2 years ago

    Though I am physically fit to go to Bank's Branch, I obtained my Digital Life Certificate (DLC) at Customer Service Support (CSS) authorized by Govt. of India, by paying Rs.50/- to inculcate the easy way of submitting LC and sensitize the Bank's staff. But, the Bank's Branches' controller refused to accept the DLC, sent through my co-pensioner, mainly due to lack of knowledge on Jeevan Pramaan. Offcourse, I presented physically two days later at the pension paying branch and they accepted my presence and updated my LC free of cost.
    Similarily, the STO, of Kakinada (EGDist.)(AP) warned the local Customer Service Support centres (six in number) not to issue DLCs under Jeevan Pramaan, for which they are not going to accept.

    Why can’t EPFO link different PF accounts through one UAN?
    Of late, there has been much publicity on how the Provident Fund department has smoothened matters out for employees and employers, much of it probably true for those willing to "do the needful". Otherwise, if you are the sort who insists on doing things the correct way, then it is still the same old same old. Whether this is a banking issue, as it involves our money, or whether this is a consumer issue, fact remains, the Provident Fund people come under the Ministry of Labour.
     
    And that is where the issue really becomes complex. People with huge savings in Provident Fund are viewed as fair game in this context. The number of people whose Provident Fund amounts run into lakhs are now in lakhs. No longer is Provident Fund basis minimum payable - it is now often calculated on the total salary plus perquisites, and can very soon become a sizeable figure. This, to the usual babu in this Department, is like candy to a rat. Some examples.
     
    My son, like many other young people of his age and generation, changes jobs frequently and therefore generates a whole range of new add-ons. Some companies evangelise a particular bank and branch, other companies insist on their own policies for various issues, but all of them have to open a Provident Fund account for him.
     
    In the last eight years, my son has accomplished the amazing score of five Provident Fund accounts, with registered offices for those companies and therefore documentation at Mumbai, Delhi, Jaipur, Chennai and now Gurgaon.
     
    Theoretically, all five of these accounts, same person, same permanent account number (PAN), same father's and mother's name, same address, same everything, should have been linked by a single Universal Account Number (UAN). In reality, because of the huge difficulties faced in linking provident fund accounts through the UAN number, when shifting to a new job, and with time-based deadlines staring the new employers in the face on deposit, he ends up getting yet another UAN number at every new job.
     
    Trying to put them together, subsequently, is the trap that the Employee's Provident Fund Organisation (EPFO) sets for people in this sort of a situation.
     
    For the EPFO, this takes weeks, months or more - totally up to them. The favourite tricks they use include -
     
    a) Not sending the One Time Passcode (OTP)
    b) Introducing a loop through the employer, making matters convoluted especially in the case of the ex-employer.
    c) Insisting on physical presence at EPFO offices all over the country instead of closest to the employee.
     
    Meanwhile, within less than three years, the amounts with the EPFO stop earning interest. Their method of calculating interest due is also, to put it mildly, very innovative. If you left in, for example, January, then you may see that your interest for the full financial year from April onwards is not added on!
     
    In my case, over a mosaic career spread over a variety of professions, I have seen the following with Provident Fund. This includes demise of the Seaman's Provident Fund to a huge scam involving the best of cricketers and film stars, two episodes of top-end Indian corporates, which has subsidiaries that went bust swallowing up my provident fund and more recently, my own pension getting stuck in babu-land variously.
     
    The big ticket here is that I refuse to bribe. There is or are no dearth of agents and consultants who are all over the place, on-site and online, who would probably cost me a percentage share of the proceeds less than a year's interest lost but the larger issue here is to first prove a point and then file the required Right to Information Applications as well as Public Grievances to try and fix the guilty.
     
    What is the solution? I can think of only one - the money in Provident Fund should be converted into some sort of bonds or certificates, payable either on maturity relevant to the age of the person or at a discount if encashed in advance for whatever reason. Nothing else will work in the maze and trap that the EPFO Act has become.
     
    (Veeresh Malik is an activist from Delhi, who continues to explore several things in life)
     
     
     
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    User

    COMMENTS

    Rahul Salve

    6 months ago

    Majha aai chi pantion 3 mahine jhale aali nahi bank mangerla vicharal tar te bolatat heil 1 ,2 ,divsat tya sathi mi kay karu shakto mala sanga

    Prakash Patel

    2 years ago

    This is institutional and organized loot, nothing else

    Prakash Patel

    2 years ago

    Contrary to the claims recently doing rounds in media,PF transfer from on EPFO office to other office is taking too long ,in my case it is over six months since I have applied for transfer my PF from Pune to Baroda on the excuse that my previous employer does not authorized anybody for digital signature or Aadhar linkage with UAN like such nonsense.I wonder what is the use of UAN if you have to apply for transfer ? Shouldn't be done automatically when you submit UAN to new employer and he start deducting PF after opening new PF account when PAN,Aadhar,Bank account are linked?. Govt. must close this organization and transfer all PF holders to NPS. They simply refuse to change with new realties in financial world

    REPLY

    mohan v

    In Reply to Prakash Patel 2 years ago

    Govt. is intentially making EPFO transfer difficult so that they shift to NPS. And NPS is well concieved scam. Utimately govt. wants to grab your 12% basic pay in name of social insecurity schemes.

    Ganesh Johnson

    2 years ago

    Forget UAT numbers. Why did they not use just the PAN to link all these various EPFO accounts that an employee opens up when s/he leaves and joins new companies? The income tax PAN is now more than 20 years old. Why did they have to invent this "UAN" again? Just one PAN and this problem would have been solved! But obviously, no one wants simple, common sense solutions. Everyone wants to "invent" their own number!

    REPLY

    Chandragupta Acharya

    In Reply to Ganesh Johnson 2 years ago

    Every one does not have a PAN. There will be many Class III / IV employees who do not have PAN.

    mohan v

    In Reply to Chandragupta Acharya 2 years ago

    Do not ever support govt. like them. They are focefully taking 12% of basic salary and also taking details. Can't they create a PAN card with same datails and money before opening EPFO account. Now what at the time of claiming back money? Is is legal to hold a account without PAN / Aadhar. Why EPFO accouts does not get auto closed if not linked with Aadhar. Because govt. to gulp entire principle + interest amount of poor uneducated and ignorant employees.

    Chandragupta Acharya

    2 years ago

    The UAN project has been badly conceived and hopelessly implemented. The UAN is nothing more than your login id for the EPFO website. It does not do away with the need to transfer PF balance from the old employer to the new. If it was intended to be a unique number, even a simple check such as ‘the same PAN cannot be linked to more than one UAN’ could have avoided a large number (though not all) of duplicate UAN cases. This was elementary. Automatic and forcible generation of UAN even for lateral employees is a blunder. To make matters worse, EPFO does not allow one mobile number to be linked to multiple UAN, leading to employees with multiple UANs forced to quote different mobile numbers (such as those of family members) for their different PF accounts. So much for consolidation!

    All the employee services - such as maintenance of employee profile & KYC, passbook download, online grievance lodgment, online transfer application etc. are handled through separate websites. Imagine a bank telling you to visit one website for balance check, another for statement enquiry and a third one for cheque book request! But that is what EPFO does.

    Kamal Garg

    2 years ago

    But the more important and crucial issue is that why we need so many authentication in India for doing any kind of financial transaction. First, we were asked to provide PAN number, then in quest of KYC, we were asked to provide photo identification and resident proof, then, C-KYC, then, UID/Aadhaar and now, UAN. Why we are hell bent on harassing our citizens for their rightful things. And the irony is that all the successive governments have made life more tough and not easy. And see now, the government is hell bent on improving the ranking in "ease of doing business". You leave aside "ease of doing business", what about living a dignified life in India - why such plethora of laws and misjudgement and harassment on citizens' identity for their rightful things.

    mohan v

    2 years ago

    Dear Author,

    Pl. write a better article. Do you think govt. is struggling to link PF accounts due to technical details in a country India which
    is IT super power?

    Before i start my article, let me teach you about land grabbing.
    In land grabbing, goons forge land documents and create duplicates and take ownership of it.
    That is better where both of them can go to courts.

    But in PF the scam is even more advanced.
    Say, PF subsribers details are follows:


    Name: Ram
    Father name: Dasarath Raman Kapoor
    Company name: Abacas Tecnologies (say, company got closed)


    Now, the EPF officials change the names to follows :
    Name: Rama
    Father name: DHasar Rama K
    Company name: AbacesSS Technologies

    Now, when Mr. Ram tries to claim his PF, they reject it. Later Mr. Ram loses his ownership to his PF account.
    Govt. officals then transfers this ownership to a BENAMI person. This benami person gives written concent that he does not PF.
    Then Govt. grabs all money in name of welfare.

    Bank accounts gets closed if not linked by aadhar by 31 dec.
    But no deadline for EPF accounts.

    Employers transfer salary to banks and later employee just consults bank for his money through cheque/atm/fund transfer.
    But, in EPF employee has to be in touch with old employers, sometimes the employers which are shut down.

    What a social insecuity.

    Every month 1000's of rupees get debited in payslip as EPF contribution, but i cannot see them online.
    My old EPF are not transferred to UAN. I don't see details.
    But, still, 1000+ rupees gets deducted.

    This is a special bankrupt organisation, where you lose money but still contribute monthly.
    E.g Krushi cooperative Bank , Prudential cooperative Bank, Vasavi cooperative bank were bankrupt but after that people don't contribute money to
    them because they are already bankupt. But EPF is special case, despite being bankrupt, we still contribute into this social insecutiy scheme.

    Why not stop contibuting EPF and transfer that amount into salary bank acccount UNTIL govt resolves old epf transfer issues?
    Only then govt. will look into it.
    Request Moneylife to publish these kinds of solution specific articles and also a change/petition instead of some bank-charges petition.

    Parag Gupta

    2 years ago

    Same thing happened with me. I have changed the job last year and given my UAN and Adhaar or whatever they have asked but still new UAN ha created. Now follow the manual procedure again to get old PF account linked with new UAN. I don't know what technical challenge PF department faces while linking PF accounts with same UAN when PAN Card, Name, Parents details and everything is same in PF accoints.

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