What happens with the PF money

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sharktale1212

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So one of my colleagues who recently joined the company applied for a PF transfer. Turns out the PF office which is located in Gurgaon was raided and no transfers are allowed. When trying to get the status, the (previous) company says there is no way to check the status, even raising any complaints is not allowed. With this, he is unable to transfer his 6yrs worth of PF and doesn't even know what is happening. And this has been going on for 9 months.

This is making me wonder - What happens with the PF money which gets deducted regularly from our salaries? Where is it invested? How do they manage 8-9% interest yearly on it?
 
i think the pf money is invested in government bonds or infrastructure bonds. the govt pays interest on the money at this 8-9% high rate for using our money. Naturally, its become expensive for them & that's why recently Jailtley was trying to get the interest paid on PF to around 6% or lower.
 
i left my company after 6 months and submitted forms to my company after 2 months, 3 weeks ago. Their helpline says received form but no update and also no sms from pf office regarding if forms have reached them so i know they havent done anything for the past 3 weeks. Its frustrating as my company pf office is in karnataka and i live in gurgaon. my uan does have my pan, aadhar , bank details there in kyc section. Anyway i can directly submit forms to pf office without need of employer ? i just need my money quick as company helpline is saying it takes upto 3 months to withdraw so they can while away their time. the regional pg office i checked has made their mandatory disclosure where 90% settlements take upto 10 days and i should get it quick as my forms were all ok with all documents. any pf experts ?
 
RakaKaKaka said:
i left my company after 6 months and submitted forms to my company after 2 months, 3 weeks ago. Their helpline says received form but no update and also no sms from pf office regarding if forms have reached them so i know they havent done anything for the past 3 weeks. Its frustrating as my company pf office is in karnataka and i live in gurgaon. my uan does have my pan, aadhar , bank details there in kyc section. Anyway i can directly submit forms to pf office without need of employer ? i just need my money quick as company helpline is saying it takes upto 3 months to withdraw so they can while away their time. the regional pg office i checked has made their mandatory disclosure where 90% settlements take upto 10 days and i should get it quick as my forms were all ok with all documents. any pf experts ?
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If you have a UAN, you can request transfer online. Thats what I did last year.
 
6pack said:
i think the pf money is invested in government bonds or infrastructure bonds. the govt pays interest on the money at this 8-9% high rate for using our money. Naturally, its become expensive for them & that's why recently Jailtley was trying to get the interest paid on PF to around 6% or lower.
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I forgot to check this one for a long time. My understanding is that they have started to move money in stock markets too:
http://profit.ndtv.com/news/your-mo...ime-hopes-for-better-returns-10-facts-1204592

As many PF managers don't have the know-how this money is going to the professional money managers, mutual funds etc. What is the criteria being set for choosing those? Additionally what happens during the next crash? This becomes more concerning when reading about the Gurgaon office raid. Hypothetically there could be a day when it turns out there is no money in PF to pay out people. So my question was more of how the money flows - once PF is deposited, where it goes, who looks after it, who allocates to bonds/stocks etc,
 
Bloodsucking companies invest our pf money, earn interest than dont give us money.

They send us here and there, misguiding us.we are idiots
 
^^ The money is deposited to PF offices. Companies cannot earn interest on money unless they are lying about opening the PF accounts. If the PF account is opened, money has to be deposited on timely basis, otherwise the company will be penalized for delays by the PF office. For example in one instance, Wipro in Mumbai was made to pay over 5 crore in penalty for delay in depositing PF amount.

upload_2016-8-9_15-6-13.png
 
^ I don't think he was talking about companies depositing money on behalf of their employees. More of EPFO not making withdrawals simpler.
 
6pack said:
@sharktale1212, probably something like this might repeat itself.
http://www.bannedthought.net/India/PeoplesMarch/PM1999-2006/archives/2001/sep2k1/uti.htm
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That is exactly my concern. And frankly I would be equally concerned even if they kept investing in government bonds. Our government is not exactly up to par either:
http://economictimes.indiatimes.com...ector-banks-for-fy17/articleshow/53280082.cms

While fair measure of this will be from taxes some of it might be even from the so-called government bonds.

So I am really trying to find where does the money go. In countries like US, one can manage their own retirement money but in India we don't seem to have concrete information as to where the money even is.
 
I recently changed company and applied for online transfer via EPF site.
Money was transferred to new account in two weeks, hassle free experience.

There was a minor discrepancy regarding the transferred amount, raised a grievance and no response whatsoever since then.
The amount was too low to waste my time and follow it up, but left a bad taste in the end as correspondence with these guys is hopeless.
 
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