EPFO settles 1.23 cr claims in FY14, 98% in mandated 30 days

Retirement fund body EPFO settled 1.23 crore claims in 2013-14, including provident fund withdrawals and transfers, with as many as 98% of them concluded within the mandated 30 days.

According to a recent performance review of the Employees' Provident Fund Organisation (EPFO) by Central Provident Fund Commissioner K K Jalan, 66% of the claims were settled in 10 days and 90% within 20 days.

To speed up the process, the EPFO recently asked its over 120 field offices to settle claims, including PF withdrawals and pension, within 20 days as against the mandated 30-day time frame.

According to the EPF and pension schemes run by the EPFO, claims complete in all respects should be settled within 30 days of receipt.

If a PF Commissioner fails to settle a claim in the stipulated period, a penal interest at the rate of 12% per annum may be charged, which may be deducted from the commissioner's salary.

In addition, the review showed the EPFO paid 94% of members' benefits electronically to their bank accounts.

During 2013-2014, the EPFO updated the accounts of 13.57 crore members, leaving a residual pendency of 5% of annual accounts. The updated accounts enable members to see their PF balances along with the interest accrued.

The EPFO aims to provide PF account information to its over 5 crore active subscribers on a real-time basis.