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Saturday, Oct 16, 2021
Outlook.com

Providential Fiat

PF and pension claims will now have to be settled in 30 days

Providential Fiat
Providential Fiat
outlookindia.com
-0001-11-30T00:00:00+05:53

AMONG the myriad nightmares that Indian bureaucracy serves up for citizens, one of the worst is getting your legitimate provident fund (PF) and pension claims. The situation is bad enough to have shocked the government to take some unprecedented measures.

It has announced that every PF and pension claim has to be formalised and settled within 30 days. PF commissioners will now be personally liable for any failure to do this, and penal interest at the rate of 12 per cent per annum on the benefit amount would be deducted from his salary for any delay. The aim, says the government, is to cut out the unnecessary delays due to bureaucratic red tape and corruption and "provide prompt, time-bound, and trouble-free service to the people".

But will it work? The backlog is enormous. According to official data, the number of pending PF and pension-related cases was 85,431 in the beginning of 1995-96. By end 1996-97, it had increased to 146,409. By September this year, this has gone beyond the two-lakh mark. And trade unions...

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