PF deposited in pension fund after 58 years

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Aryan (Querist)
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02 February 2023 Dear PF Expert,

I have a question that even after completing 58 years of one of our employee, we kept depositing PF in his pension fund account, now he is 60 years old. Now my question, what will happen now, how to recover that amount, which was we deposited from 58 years to 60 years (Two year fund) etc.

And what should be done for this.

Asha Kanta Sharma online

Asha Kanta Sharma

(Expert)
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10 July 2024 If PF contributions were continued to be deposited into the pension fund account of an employee beyond their retirement age (which is typically 58 years for PF purposes), there are steps you can take to rectify the situation:

1. **Stop Further Deposits:** First, you should immediately stop depositing any further contributions into the employee's pension fund account once you realize the error.

2. **Recovery of Excess Deposits:** Since contributions were made in error beyond the retirement age, you would need to recover the excess amount deposited from the pension fund account. This typically involves the following steps:

- **Identify the Excess Amount:** Calculate the total amount deposited into the pension fund account from the employee's 58th birthday until now.

- **Inform the PF Authorities:** Notify the concerned PF authorities (EPFO) about the excess deposits made. This can usually be done through your employer's PF portal or by contacting the EPFO directly.

- **Request for Withdrawal or Adjustment:** Request the EPFO to withdraw the excess amount from the pension fund account. This may involve submitting a formal application or following a specific process outlined by the EPFO.

3. **Documentation:** Ensure that you have documentation supporting your claim, such as payroll records, PF contribution statements, and any correspondence with the EPFO regarding the excess deposits.

4. **Legal and Compliance Considerations:** It's essential to handle this process carefully to comply with PF rules and regulations. EPFO may have specific guidelines on the process for recovering excess contributions.

5. **Employee Communication:** Communicate with the affected employee about the situation. Explain the error and reassure them that steps are being taken to rectify it. Provide them with information on how the recovery process will proceed and ensure transparency throughout.

It's advisable to consult with your HR department or a PF consultant who is familiar with EPFO procedures to ensure that you follow the correct steps and comply with all legal requirements during the recovery process.