The Employees’ Provident Fund Organisation seeks to payout the pension on the day of superannuation. This relief is possible under the “PRAYAAS” SCHEME. The initiative comes under the ongoing process of making systems more efficient and removing the notorious lengthy documentation process that delays payments.
The initiative comes under the Employees’ Pension Scheme, 1995. According to a press release, few subscribers from organisations such as Indian Oil Corporation Ltd., Fourrts India Laboratories Ltd., Ashok Leyland Ltd. and T. Thomas Educational Trust have had their pension payouts sent on the day of the subscribers’ retirement.
Subscribers and employers should start the documentation procedure early to have a seamless implementation. Some of the prerequisites required for a smooth process include updating the online profile, KYC of the employees and adding e-nominations. Further, the contribution due for the month of retirement should be paid in advance and file the required pension claims along with the necessary documents.
The Employees’ Provident Fund Organisation is one of the world’s largest social security organisations. Opening a Provident Fund (PF) account for salaried employees is beneficial because of the tax benefits, insurance benefits, pension, and partial withdrawal. The employee receives the sum of contributions made by the employee, the employers and the interest earned until retirement.
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