SHILLONG, MAY 8: The Meghalaya government has allowed 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 per cent of the amount accumulated in their CPF accounts.
The decision was notified on Friday by Vijay Kumar Mantri following representations from retired employees seeking full withdrawal of their provident fund savings due to financial, medical and personal needs.
“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 stated.
Under the order, applications for withdrawal must be submitted in the prescribed Form-I. The Directorate of School Education & Literacy (DSEL) will verify and authorise claims for school employees, while the Directorate of Higher & Technical Education (DHTE) will process claims relating to college employees.
The notification further stated that the State Bank of India
, Laitumkhrah Branch, Shillong, will permit withdrawals only after issuance of official authorisation by the concerned directorates.
Before any withdrawal is processed, the SBI Branch Manager has been directed to explain to the retired employee the estimated pension benefits available under annuity-based options and the long-term financial implications of withdrawing the full accumulated corpus instead of opting for pension-linked annuitisation.
Retired employees opting out of the scheme will also be required to submit an undertaking confirming that they have been fully informed about the pensionary benefits available under the annuity option, understand the financial implications of full withdrawal, and are voluntarily opting out of the scheme.
The government clarified that employees who opt out “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.”
The notification also extends the opt-out provision to in-service deficit school and college employees, allowing them to invest in other financial, pension or retirement schemes of their choice.
For serving employees who choose to opt out, their monthly CPF contribution will thereafter be credited directly along with salary into their designated bank accounts following withdrawal of the accumulated amount.
The government recalled that the CPF Scheme was notified on March 18 and April 9 this year under the Meghalaya Non-Government Schools and Colleges Employees Centralised Provident Fund Act, 1969, with the objective of ensuring long-term financial security and social protection for employees of non-government educational institutions in the state.
However, after examining the provisions of the Act and the Scheme, the government observed that neither mandated compulsory subscription for all employees and that the framework was primarily enabling in nature.
“It is 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,” the notification stated.
Employees choosing to remain under the scheme will be required to open a Permanent Retirement Account Number (PRAN) through designated SBI branches.
The government further stated that once transfers to PRAN accounts and withdrawals by employees opting out are completed, the Central CPF Account maintained at SBI Laitumkhrah Branch will be closed permanently.
Any issue relating to implementation or interpretation of the notification will be decided by the Education Department, whose decision “shall be final.”
