By Our Reporter
SHILLONG, May 8: Facing severe resistance, the Meghalaya government has allowed retired as well as in-service employees of deficit schools and colleges to opt out of the Meghalaya Non-Government Schools and Colleges Employees Centralised Provident Fund (CPF) Scheme, 2026, and withdraw their accumulated CPF amounts subject to prescribed conditions.
The Education Department issued a notification on May 8 stating that the decision was taken after several retired employees sought permission to withdraw the full amount accrued in their CPF accounts citing financial, medical and personal exigencies.
The notification also noted that some in-service employees had sought the option not to continue under the CPF scheme and instead invest their savings in other pension or financial instruments of their choice.
According to the government, an examination of the Meghalaya Non-Government Schools and Colleges Employees Centralised Provident Fund Act, 1969 and the Meghalaya Non-Government Schools and Colleges Employees Centralised Provident Fund Scheme, 2026 found that neither made subscription to the scheme compulsory for all employees.
Under the new provisions, retired deficit school and college employees opting out of the CPF scheme will be allowed to withdraw 100 per cent of the amount standing in their respective CPF accounts after verification and authorisation by the concerned directorates.
The Directorate of School Education and Literacy (DSEL) will verify claims relating to school employees, while the Directorate of Higher and Technical Education (DHTE) will handle claims relating to college employees.
The notification stated that withdrawals from the Meghalaya Non-Government Teachers EPF Account maintained at the State Bank of India’s Laitumkhrah branch would only be permitted after authorisation from the concerned directorates.
Before withdrawal, the SBI branch manager has been directed to provide mandatory financial counselling to retired employees regarding the estimated pension benefits available under annuity-based options and the long-term financial implications of withdrawing the entire accumulated amount.
Retired employees opting out will also have to submit undertakings stating that they have been informed about available pension benefits, understand the financial implications of withdrawing the entire corpus and are voluntarily opting out of the scheme.
The government has also permitted in-service employees of deficit schools and colleges to opt out of the CPF scheme and invest in any other pension or financial instrument of their choice.
Such employees will be required to submit applications in a prescribed format and undergo awareness and counselling procedures before withdrawal of accumulated funds.
The notification stated that employees opting out of the scheme would not thereafter be entitled to claim benefits under the CPF scheme except benefits already vested prior to opting out.
Employees continuing under the scheme will have to open Permanent Retirement Account Numbers (PRAN) through designated branches of the State Bank of India and submit the details to the concerned directorates for transfer of accumulated CPF amounts into their PRAN accounts.
The government further stated that after transfer of accumulated CPF amounts to PRAN accounts and withdrawal by employees opting out, the Central CPF Account maintained at SBI Laitumkhrah branch would be closed and no further transactions would be carried out through that account.
