EPFO rejects every third claim it receives, says report
In a startling revelation, it has been revealed that the Employees’ Provident Fund Organisation (EPFO) has rejected every third claim that it received, reported Indian Express.
A number of subscribers have raised their grievances relating to delay in claim settlement on the official X handle of EPFO, which is the world’s largest social security organisation with over 277 million accounts and a corpus of nearly ₹20 lakh crore.
The pension body, in response to one such query, stated that it normally takes 20 days to settle a claim or release the PF amount if the same submitted to the concerned EPFO office is complete.
Out of the total 73.87 lakh claims received for final PF settlement in financial year 2022-23, 33.8 per cent (24.93 lakh) were rejected. At the same time, 46.66 lakh were settled and 2.18 lakh remained as closing balance, shows official data.
This was considerably higher than the rate of rejection in 2017-18 and 2018-19, when it stood at nearly 13 per cent and 18.2 per cent, respectively.
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The rate of rejection, in percentage terms of rejected claims out of total applications for claims, jumped further to 24.1 per cent in 2019-20 and 30.8 per cent in 2020-21 for final settlement claims.
Moving to 2021-22, the rate of rejection for final settlement claims rose to 35.2 per cent i.e., more than one-third of the total number of claims that the pension body received.
Meanwhile, officials from the Employees’ Provident Fund Organisation (EPFO) in October last year had expressed their concern about being under “extreme pressure". This pressure stems from the recent reversion to manual annual account updates by the EPFO, while they are
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