Good news for pensioners! PF settlement to take place on retirement day

In a move that could end delays in settlement of provident fund money, retirement fund body Employees Provident Fund Organisation or EPFO has asked its field offices to make final settlement on the day of retirement.

After the move, the employers will now have to pay the amount of gratuity within 30 days from the date it becomes payable to the person concerned.

Labour Minister Bandaru Dattatreya said in a written reply to the Rajya Sabha said: "Directions have been issued by EPFO to all its field offices to make the payment of provident fund and pension to members of Employees Provident Funds (EPF) Scheme, 1952 and Employees Pension Scheme (EPS), 1995 on the date of retirement itself."

He was responding to a question if the government had decided to settle the PF/EPF, gratuity of retiring on the day of retirement itself.

He further said: "As regards settlement of gratuity, as per Payment of Gratuity Act, 1972, the employer shall arrange to pay the amount of gratuity within 30 days from the date it becomes payable to the person to whom the gratuity is payable." There are about 55.51 lakh pensioners in the country.

After coming to power in 2014, the BJP government decided to give pension payment order to an employee on the day of his or her retirement.

Union minister Jitendra Singh while announcing about the plan said: "The goal is to ensure 100 per cent payment of all retirement dues and the delivery of pension payment order to retiring employees on the day of retirement itself." The Department of Pension and Pensioner's Welfare have taken a number of steps including review of forms and simplification of procedures.

(With inputs from PTI)