PFRDA New Policy: The upper limit of raising money in the pension sector of PFR is going to increase. Reported by PFRDA. A number of changes are also coming in the case of NPS.
This time Digital Desk : Good news for employees. The Pension Fund Regulatory and Development Authority ( PFRDA ), the regulatory body, has made major changes to the rules for raising money in the pension sector of the Employee Provident Fund . Besides, PFRDA has taken a bunch of other decisions. Notable among these is the increase in the duration of Aadhaar addition with PF.
Up to now, at the time of retirement or after 60 years, if the amount deposited in the pension fund of PF was more than two lakh rupees, it could be withdrawn up to 60 per cent in one go. Under the new rules, if the amount deposited in the pension sector at the time of retirement is less than five lakh, it can be withdrawn completely. In addition, the age limit for joining the National Pension System (NPS) has been raised from 65 to 60 years. Similarly, the upper age limit for savings in that project is also increasing to 65 years.
According to the old rules, if the amount deposited in the pension sector of PF was more than two lakhs, a maximum of 60 per cent could be withdrawn. Annuity had to be bought with the remaining 40 percent. The pension money for the rest of his retirement life would come from that Annuity. Due to the change in the new rules, up to five lakh rupees can be withdrawn in one go. However, in that case, PF pension will not match every month.
Discussions have started naturally about this bunch of new changes. The change has also come as a way to withdraw money from NPS. So far, there was an opportunity to raise a maximum of one lakh rupees in one step for special needs. Its upper limit is increasing to two and a half lakh rupees.
Recently, the Employees Provident Fund Organization ( EPFO ) said that if Aadhar is not added to the PF by June 1, the deposit in the PF account will stop. That deadline is currently growing. According to the new guidelines of EPFO, Aadhaar must be added to the PF account by September 1.
