A day after government rolled back its decision to tighten PF withdrawal norms restricting subscribers to withdraw employer’s share of PF contributions before the age of 58 years, the Retirement fund body Employees' Provident Fund Organisation (EPFO) in its meeting held on April 21, has planned to launch ‘One Employee One EPF Account’ system on May 1, in order to discourage premature PF withdrawals and encourage state governments to join its pension system.
Emphasizing the need for effective communication with employees and employers, EPFO’s Central Provident Fund Commissioner V P Joy stated that frequent withdrawals by employees on each job change, which is also encouraged by employers, need to be addressed by good service and simple interface. He is of the view that employers and employees must be able to view and access the money trail pertaining to their individual profiles.
Joy stated that if the EPFO services and schemes are made more employee friendly, then a reference can be made to state governments for joining the EPF pension systems. He stated that once EPF services are improved then more people will voluntarily join the EPF system.