Withdrawal of Fund Balance with Interest and Dividend
Although Employees’ Provident Fund [EPF] which requires that a compulsory age be completed to claim the fund balance, members of ETF do not have to wait till they complete a specified age to withdraw their fund balance.
- However, the following points must be noted:
- Cessation of employment is compulsory if a withdrawal claim is to be made.
- Reason for cessation could be retirement, resignation, dismissal, vacation of post, etc.
- A member is not entitled to make a second / subsequent claim until lapse of 5 years from the date of previous withdrawal of fund balance.
Exceptions to this rule are:
- Reaching the age of 60 years
- Migrating for permanent residence
- Joining state service which entitles the member to a pension
- Termination of employment due to permanent disability
- Death of a member
General Instructions for making a withdrawal Claim
- Those eligible to make a withdrawal claim should pay attention to the under-mentioned points:
- Processing of claims has been computerized significantly. It is therefore necessary that the claim application form should be legibly and correctly filled to avoid data errors. Name, address, bank account details, etc. should be in BLOCK CAPITAL LETTERS.
- A separate application form is required for each Employer, if the member had worked for more than one Employer.
- The member must have a bank account in his/her name or jointly. A photocopy of the bank passbook or statement showing such details as the bank name, branch, account number, account-holder's address and national identity card [NIC] number, etc. should be attached to the claim application.
- A copy of NIC certified by the Employer should be submitted.
- In case of in the member’s name given in the claim application is different from that appearing in Returns, Annual Member Statement, in the NIC or the Bank Account, a letter from the Employer certifying that those names refer to one and the same person should be submitted.
- In cases where the institution / company where the member was employed is not in operation and whereabouts of proprietor, partners or directors are not known, a form VI(D) titled Letter of Indemnity [specimen is given in Appendix ] should be completed by the member and certified by Grama Niladhari and Divisional Secretary. This Letter of Indemnity should be submitted along with the claim application as per instructions given therein, in addition to Form VI(C).
Members cannot, while being employed, make a claim for withdrawal of fund balance made up of contributions from the current employer, even if they have completed five years of service.
Methods of Settling Claims
-
Normal system
Claims are paid within 21 working days subject to availability of returns and submission of required documents which mention above.
-
Special system
Claims are paid within 10 working days subject to producing documentary proof in support of the urgency, for instance migration, sickness/surgery, redeeming of pawned articles, family expenses such as weddings, educational expenses etc.
-
Normal system
Claims are paid within 21 working days subject to availability of returns and submission of required documents which mention above.
-
Special system
Claims are paid within 10 working days subject to producing documentary proof in support of the urgency, for instance migration, sickness/surgery, redeeming of pawned articles, family expenses such as weddings, educational expenses etc.
-
Express claims system
Claims are paid within two working days. Before accepting claims, the Board will ensure that contributions and returns have been received by the Board from the respective employees. An official service fee is charged for each claim, depending on the value of the claim.
| Value of the claim | Fee |
|---|---|
Up to Rs. 100,000.00 | Rs. 1,000.00 |
Rs. 100,001.00 to Rs. 1,000,000.00 | Rs. 2,000.00 |
Over Rs. 1,000,000.00 | Rs. 3,000.00 |
The number of claims accepted on this basis per day is limited to 65.
Withdrawal claims are accepted and processed at the following offices of the Board :
- Head Office. "MEHEWARA PIYESA", Narahenpita, Colombo 5.
- Regional Offices at Gampaha, Kandy, Matara, Kurunegala and Badulla
Claim applications may also be handed over to other Regional Offices of the Board.
As an expert in financial matters and provident funds, I have a comprehensive understanding of the concepts and procedures involved in the withdrawal of fund balances with interest and dividends, particularly in the context of the Employees' Provident Fund (EPF) and the specific details mentioned in the article.
The article discusses the withdrawal process for members of the Employees' Provident Fund and highlights several key points that individuals need to consider when making a withdrawal claim. I will break down the concepts used in the article:
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EPF vs. ETF Withdrawal Rules:
- EPF has a compulsory age requirement for fund withdrawal, whereas members of ETF can withdraw without completing a specified age.
- Cessation of employment is necessary for a withdrawal claim, which can result from retirement, resignation, dismissal, vacation of post, etc.
-
Conditions for Subsequent Claims:
- A member cannot make a second/subsequent claim until five years have passed from the date of the previous withdrawal, except for specific exceptions like reaching the age of 60, migrating for permanent residence, joining state service with pension entitlement, termination due to permanent disability, or death.
-
General Instructions for Withdrawal Claims:
- Claims processing is significantly computerized, requiring accurate and legible filling of the claim application form to avoid data errors.
- Separate application forms are needed for each employer if the member has worked for more than one employer.
- The member must have a bank account, and a photocopy of the bank passbook or statement should be attached to the claim application.
- Employer-certified copy of NIC and a letter certifying name consistency are required.
- In cases of the employer's institution not being in operation, a Letter of Indemnity certified by Grama Niladhari and Divisional Secretary is needed.
-
Methods of Settling Claims:
- Normal system: Claims are paid within 21 working days, subject to returns availability and submission of required documents.
- Special system: Claims are paid within 10 working days with documentary proof supporting urgency (e.g., migration, sickness, family expenses).
- Express claims system: Claims are paid within two working days, subject to confirmation of contributions and returns, with an official service fee based on the claim value.
-
Official Service Fee for Express Claims:
- The official service fee for express claims varies based on the value of the claim, ranging from Rs. 1,000.00 to Rs. 3,000.00.
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Claim Submission Offices:
- Withdrawal claims are accepted and processed at specified offices, including the Head Office and Regional Offices in Gampaha, Kandy, Matara, Kurunegala, and Badulla.
In conclusion, individuals making withdrawal claims from provident funds should adhere to the specified guidelines, ensure accurate documentation, and be aware of the processing timelines and associated fees.
