Passbook for Provident fund soon

Public Provident Fund (PPF) | admin | December 15, 2011 at 10:42 am

The retirement fund body EPFO's about 50 million subscribers may get 'Contribution Card', similar to a bank pass book, which shall have details of account and will be updated every month, from April next year.

At present, it is mandatory for the employer to prepare 'Contribution Cards' and update it every month as per the provisions of the Employees' Provident Fund Scheme 1952, but such cards are not provided to subscribers.

The proposal to provide Contribution Card to subscribers from April 1, 2012, will be discussed at the meeting of the Employees' Provident Fund Organisation's (EPFO) apex decision making body — the Central Board of Trustees' (CBT) — on December 23, a source said.

The card will also have additional information like date of birth, nomination and family details.

EPFO has proposed the CBT, headed by the Labour Minister Mallikarjun Kharge, implementation of this proposal from April 1, 2012.

Earlier, the body had worked out a proposal to provide pass books to certain category of subscribers engaged in unorganised sectors, like building and construction, and brick kiln.

However, EPFO did not implement the scheme fearing that it might face difficulties as labourers change jobs frequently.

EPFO had argued that "it will be difficult for a worker to continue with the pass book when he changes his employment from unorganised to organised sector."

In order to overcome the problem, the EPFO wants the trustees to consider a uniform scheme to cover all subscribers 4.72 crore.

Source: Economic Times