Should Government abolish PF Act.
In old days there was a time that jobs were not available and after retirement every individual need some fixed monthly income or lumpsum money. It is a complicated law, getting back your own money is a problem. In Private sector very often we have to change our jobs and every time getting PF account changed is a problem. Govt is having more than thousand crores unclaimed money with them.
Please share your opinion. Should this Act be withdrawn? more
PF is very useful account. it should not be abolished. Problems should be solved. Abolishing everything is not good option instead try solving the problematic issues more
In private sector we still don't have any pension. Also we don't really have comfortable investment avenues which can provide returns. The key advantage of PF is interest is tax free, which is critical for those who are not earning anymore.
To solve the problem, there should be single PF account. It should not be necessary to change PF account with change in job and same account should migrate to new job for PF benefit. more
The point is that the system should work whatever system it is. more
If only difficulty of getting money back is the criteria for withdrawing of the Act, I do not concur with your view point. We should put our efforts to remove the bottlenecks of the difficulties that are encountered and ensure that the system works. more
The solution lies in the PF organization returning money to the account holder in a bank FD (Fixed Deposit, which can not be withdrawn for 5 years) opened in his name in the bank in which his salary is transferred. When a person changes job, he can transfer the FD account to the bank/branch where his new job is located. Govt. should not keep the money with itself nor with the provident fund commissioner. It should be in the FD account of the employee. In this way the employee knows how much money is there in the PF and he can keep a track of his PF amount and withdraw as per time fixed by Govt. This will avoid all complications. more