Search This website

30/12/2011

Your money in Employees Provident Fund may be in trouble!!

Your money in Employees Provident Fund may be in trouble!!

For the first time in 60 years the Provident Fund (PF) office may miss its deadline for presenting its accounts to the Parliament. This predicament is due to violation of accounting standards by the EPFO’s book-keeping system and thereby not conforming to the format specified by the Government which in turn has delayed clearing of PF office’s accounts by the Comptroller and Auditor General (CAG) of India. In the recent past the PF office discovered a surplus of 1,733 crore and recommended a 9.5% PF rate. The Finance Ministry agreed to the 9.5% rate on the condition that the PF office updates all the member accounts within six months and ensure there is no shortfall in income. On both the counts, the EPFO has failed to deliver. Moreover, nearly 4.85 crore accounts were still to be updated on November 22, 2011, as per EPFO's submissions to its board's finance committee last week. More critical is the admission that it had made a huge 5.7% error in its income estimates for 2010-11 that led to an eventual income shortfall of 854 crore. Given that it now manages a corpus of 4,66,000 crore, an error of this magnitude is alarming. With interest payments promised at 9.5%, the PF office ended up with a 510 crore deficit on its 2010-11 operations - which it will now be forced to fund from its income for 2011-12. This accounting fiasco may have forced EPFO to recommend a 1.25% cut in the EPF rate so that it doesn't end up with more contingent liabilities. But there are other pressure points which will make it hard to explain when the Finance Minister reviews its state of affairs and the minutes of the EPFO board's finance committee. EPFO officials had hoped to boost income for 2011-12 with a decision to stop interest credits from April 2011 on old inoperative accounts, where no fresh contributions have come for three years or more. They had hoped to use the savings from these accounts to fund a higher EPF rate for the year.In our opinion the EPFO should be strictly held accountable in mis-handling employees provident fund accounts. There needs to be more governance and untimely rate hikes should not be allowed as they turn out to be just a gimmick, and when interest rates are reduced have a detrimental impact on retirement savings. Management of such crucial funds should be done with utmost care take into account the interests’ of several people, and Government should step-in in such dire times.

No comments:

Post a Comment

Note: only a member of this blog may post a comment.

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
Details:-
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
SMLokhande





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.