The central government is considering providing better social security to the elderly after retirement. Under this, employees associated with the Employees’ Provident Fund Organization (EPFO) can be given the option to convert their PF funds into pension. If this rule is implemented then the employees will benefit a lot. As soon as the rule is implemented, employees will be able to get the benefit of higher pension after retirement. There is a possibility that the government may make a big announcement regarding social security in the budget presented this year.
Let us tell you that the general budget of the country will be presented a few days from now, i.e. on 1st February. It is expected that in this budget the government may announce some rules related to social security. According to media reports, on the instructions of the Government of India, the Ministry of Labor and Employment has already started working on the rules related to social security. If employees get the option to convert their PF fund into pension then they can get more pension after retirement by putting their deposits in the pension fund.
You can convert PF fund into pension
By converting PF fund into pension, employees will be able to get better financial security in old age after re-employment. Information has also come to light that the Central Government is thinking of changing the PFO system to make it like banking. By doing this, people will start getting banking facilities in the PFO system. The objective of these facilities is to strengthen the social security of employees after retirement.
These benefits can be found in the new rules
You will get interest after retirement
If an employee realizes at the time of retirement that he has other sources of income. If he does not want to take pension at the age of 58, then he can get the option of 60-65 or any other age to start pension. During this period, annual interest will be received on the amount deposited in the pension fund.
Facility to deposit lump sum amount may be available
According to reports, the ministry aims to allow EPFO members to deposit a lump sum amount in their account along with regular monthly contributions. The government has been considering this option for a long time, but no consensus has been reached yet. If the government provides this facility, then more contribution will be deposited in the PF account and employees will be able to get better pension after retirement.
You can get exemption in income tax
The ministry says that many people do not get FD made in banks because the interest rate there is less than 7 percent. In comparison, the amount deposited in PF account gives more than 8 percent interest. If people are given the facility to deposit lump sum money in their PF account, then they can start investing in it for their future security.
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