EPF India: Pay all EPF balance from past along with interest to Employees
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EPF India trust and other trust managing private EPFs had a strange policy of not paying interest on any untransferred EPF or forfeiting unclaimed balances after 3 years in case of cessation of the employment or change in the job.
Recently Government of India has mandated them to pay interest for the balance and removed the 3 years clause but they have not made them pay for the old balances / lapses.
Earlier whole transfer process was non-transparent. Upon querying, employer had a standard response "department takes time to respond" and the EPF office was not accessible.
I have changed my job in 2008 and applied for transfer of EPF in 2009-10 through the employer. On approaching the employer, they had standard response that it is govt department and would take time. Also, since no statement was available in those days, it was difficult to verify if the transfer was completed or not. The EPF India has stopped paying interest until I found through "online grievance" that the transfer was never completed and failed in some process at Employers end or EPF office. As a result I had lost a significant interest on my balance in the previous account. And I am still loosing compound interest on such balance. The amount can be in few lakhs of rupees.
Earlier also, in 1994 I left job from a private company. They had their own EPF trust. There was no visibility of the EPF fund they have deducted.
EPF fund is a saving for private employees for their retirement or for their difficult time. But the policy and practices of the managing bodies are robbing the hard earned money of employees.
Action Needed: Govt should immediately make it mandatory for EPF India and other Trusts to evaluate such data and credit / pay the lost interest or savings to the rightful recipients.
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