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Salvage the PF account you forgot

Salvage the PF account you forgot

Did you transfer your provident fund (PF) account to your new employer the last time you changed your job? Chances are, you didn’t. The Employees’ Provident Fund Organization (EPFO) recently found that over half of the 5.87 crore accounts it manages have had no fresh contributions for three years or more.

Changes in the job market in the past two decades has meant that many workers have multiple PF accounts from past jobs but have not been able to consolidate them —either due to sheer inertia or because of the procedural difficulties.

The government has decided to stop crediting interest in such dormant PF accounts from April this year. Some 3 crore PF accounts with nearly Rs 16,000 crore will be affected, though the absolute number of workers at risk may be fewer.

The EPFO expects nearly Rs 10,000 crore to be withdrawn or transferred from dormant accounts in 2011-12 and has come up with new guidelines for members to claim their locked-up retirement savings.

In case you wish to withdraw your PF and the past employer is available, your claim form has to be attested by the authorized signatory from that firm.

“For many dormant PF accounts, the past employer is not available or the firm has closed down or liquidated,” says Central PF Commissioner Samirendra Chatterjee . The EPFO board has laid out a different claim procedure for such cases. “If the employer cannot be traced, workers must submit an identity proof and a proof of residence. An attestation is also needed from your bank manager about the bank account where your PF savings will be credited,” Chatterjee told ET Wealth.

Official government identity cards such as a PAN card, voters’ identity card, passport, ration card or an Employees’ State Insurance Corporation identity card are acceptable. For address proof, a copy of your electricity, water or landline phone bill or a driving license would suffice.

The EPFO has also put in place a system to check fraudulent claims. For years, several PF offices have suffered from a systemic fraud where savings are siphoned out of dormant PF accounts.

Chatterjee, however, advises workers to transfer the balances from their old PF accounts to their current one. “It’s tempting to withdraw PF balances, but transferring them would make your retirement corpus fatter with the compounding of interest. No other avenue offers capital safety with high tax-free returns,” he says.

Transfers score over withdrawals, especially with just a month left before interest credits on dormant PF accounts stop. Withdrawals may take longer than a month and interest for the period from April 1 till the date of settlement would be lost.

Transfers may also take longer than a month, but requesting a transfer could ensure that you don’t lose any interest irrespective of how long the PF office takes to consolidate your retirement savings.

“If you apply to transfer your past PF accounts before 1 April, then such accounts will be treated as operative even if the actual transfer is pending. We will keep paying interest in these cases,” promises Chatterjee.

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PME Due Date

Master Circular No. 25

Copy of Railway Board’s letter No. 69/H/3/11 dated 06.12.1974

Subject: Implementation of the Recommendations of the Visual Sub-Committee.

6. Periodical re-examination of serving Railway Employees:

6.l. In order to ensure the continued ability of Railway employees in Classes A l, A 2, A 3, B l and B 2 to discharge their duties with safety, they will be required to appear for re-examination at the following stated intervals throughout their service as indicated below:

6.1.1. Classes A l, A 2 and A 3 —At the termination of every period of three years, calculated from the date of appointment until they attain the age of 45 years, and thereafter annually until the conclusion of their service.

Note: (l) The staff in categories A l, A 2 and A 3 should be sent for special medical examination in the interest of safety under the following circumstances unless they have been under the treatment of a Railway Medical Officer.

(a) Having undergone any treatment or operation for eye trouble irrespective of the duration of sickness.

(b) Absence from duty for a period in excess of 90 days.

(2) If any employee in medical category A has been periodically medically examined at any time within one year prior to his attaining the age of 45, his next medical examination should be held one year from the due date of the last medical examination and subsequent medical examination annually thereafter.

If, however, such an employee has been medically examined, at any time earlier, than one year prior to his attaining the age of 45, his next medical examination should be held on the date he attains the age of 45 and subsequent medical examination annually thereafter.

Ammendment: It was ammended in 1993 as below

Age Group PME Due

Age 00-45 every 4yrs

Age 45-55 every 2yrs

Age 55-60 every year
As per Rly Bd's Guideline of Medical Exam issued vide LNo. 88/H/5/12 dated 24-01-1993

a) PME would be done at the termination of every period of 4 years from date of appointment / Initial medical Exam till the date of attainment of age of 45 years, every 2 years upto 55 years & there after annual till retirement.
b) Employees who has been periodically examined at any time within 2years prior to his attaining the age of 45years would be examined after 2years from the date of last PME & subsequent PME for every 2years upto 55years age.Of

NRMU 4 you

6.1.2. Classes B-1 and B-2—On attaining the age of 45 years, and thereafter at the termination of every period of five years.