EPFO Asks Zonal, Regional Offices to Allow Partial Payments on PF Claims

As per the news reports, the Employees’ Provident Fund Organisation (EPFO) has issued fresh guidance to its field offices on handling provident fund (PF) settlement claims. To address grievances caused by outright rejection of claims, the retirement body has asked officials to process partial disbursements where full settlement is not possible, ensuring that members are not left without funds.

Rationale for the Move

The Central Provident Fund Commissioner (CPFC) highlighted that several claims were being denied for reasons such as pending account transfers or non-remittance of contributions, which left members in financial distress. Citing the accounting procedure manual, the CPFC clarified that the rules already permit disbursal of available balances through part payments rather than rejecting claims.

Situations Where Part Payments Apply

According to the manual, partial settlements may be made in cases involving:

• Establishments defaulting on contributions
• Non-receipt of Form 3A
• Incomplete transfer of previous PF accumulations
• Past dues not fully realised
• Partial claims submitted by eligible beneficiaries

Offices have been instructed to record every part-payment case in a dedicated register, review them monthly, and release further payments automatically once the pending amounts are received without requiring claimants to file fresh applications.

Recent EPFO Reforms

The advisory follows other recent reforms undertaken by EPFO. Members can now access services and account information with a single login, while approval hierarchies for claim settlements have been simplified to reduce delays and improve efficiency.

Read More: EPFO Launches New Features to Improve Member Services!

Conclusion

By mandating partial disbursements instead of rejections, EPFO aims to provide timely financial relief to its members while ensuring compliance with accounting rules. This step is expected to improve trust in the PF system and ease liquidity pressures for claimants awaiting their settlements.

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