SHILLONG, MAY 8: The state government has permitted retired employees of deficit schools and colleges to opt out of the Meghalaya Non-Government Schools and Colleges Employees Centralised Provident Fund Scheme, 2026, and withdraw 100% of the amount accrued in their CPF accounts.
The decision was notified Friday by Commissioner & Secretary in-charge Education Vijay Kumar Mantri, citing representations from retired staff seeking full withdrawal “on account of financial, medical and personal exigencies.”
“Retired deficit school and college employees shall be permitted to opt out of the Meghalaya Non-Government Schools and Colleges Employees Centralised Provident Fund Scheme, 2026 and withdraw 100% of the amount accrued in their respective CPF accounts,” the notification said.
Applications for withdrawal must be submitted in the prescribed Form-I. The Directorate of School Education & Literacy (DSEL) will verify claims and issue authorisation for school employees, while the Directorate of Higher & Technical Education (DHTE) will do so for college employees.
“Only upon issuance of such authorisation shall the State Bank of India, Laitumkhrah Branch, Shillong permit withdrawal from the Central CPF Account, namely, the Meghalaya Non-Government Teachers EPF Account,” the order stated.
Before withdrawal, the SBI Branch Manager must mandatorily explain to the retired employee the “estimated monthly pension likely to accrue under the best available annuity scheme in the event of annuitisation of 50% of the accumulated corpus and withdrawal of the remaining 50%” and “the long-term financial implications of opting out of the annuity-based pension framework.”
Retired staff must then submit an undertaking confirming they “have been fully informed of the pensionary benefits available under the annuity option,” are “fully aware of the financial implications of withdrawing the entire accumulated amount,” and “voluntarily opts out of the CPF Scheme.”
The notification made clear that “employees opting out of the CPF Scheme under this Notification shall not thereafter be entitled to claim any benefit under the Scheme, except such accrued benefits as may already have vested prior to opting out.”
In-service deficit school and college employees have also been permitted to opt out and “invest in any other financial, pension or retirement scheme of their choice.” For such employees, the monthly CPF contribution “shall be released along with salary into their salary account or such other bank account as may be specified by the employee” after withdrawal of the accumulated amount.
The government noted that it had notified the CPF Scheme on March 18 and April 9 this year under the Meghalaya Non-Government Schools and Colleges Employees Centralised Provident Fund Act, 1969, “for ensuring long-term financial security and social protection of employees of non-Government schools and colleges in the State.”
However, after examining the Act and Scheme, it “observed that neither the Act nor the Scheme mandates compulsory subscription by all deficit school and college employees, and that the Scheme principally provides an enabling framework for provident fund and retirement benefit administration.”
The government said it “considers it necessary, in the interest of fairness, informed consent and financial autonomy of employees, to provide an option to eligible employees to opt out of the Scheme, subject to appropriate safeguards and informed undertaking.”
Staff who choose to remain in the Scheme must open a Permanent Retirement Account Number (PRAN) through designated SBI branches.
After transfers to PRAN accounts and withdrawals by those opting out are completed, “the Central CPF Account maintained at SBI, Laitumkhrah Branch, Shillong shall be closed and no further transactions shall thereafter be carried out through the said account.”
Any difficulty in implementation or interpretation “shall be referred to the education department, whose decision thereon shall be final.”
By Our Reporter
