Retirement fund agency Employees' Provident Fund Organisation (EPFO) has tightened norms for withdrawing the provident fund as well as to invest it in the Varishtha Pension Bima Yojana.
"Now, the subscribers will not be able to claim their provident fund at 54, as earlier. They will have to wait till they are 57. The ministry has notified the new rules," an official said. According to present norms, EPFO allowed subscribers to claim 90% of PF accumulations at the age of 54, while their claims were settled just a year before retirement.
The recent notification says that the central board authorises payment to a member of the scheme from his provident fund account not exceeding his own total contribution, including interest.
Now, if you want to withdraw your EPF contribution before 57, you will only get your contribution with interest, while the contribution of the employer can be withdrawn only after you attain the age of 57.
Members will also have to wait till they are 57 to claim PF for transfer to Life Insurance Corporation of India for investment in the Varishtha Pension Bima Yojana.