Shillong, May 8: The Meghalaya government has allowed retired and 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, giving them the option to withdraw their full accumulated CPF amount or invest in alternative pension and financial instruments.
The Education Department issued the notification on Thursday, stating that the decision was taken after several retired employees sought permission to withdraw their full CPF savings due to financial, medical and personal exigencies, while many serving employees requested freedom to choose other retirement investment options.
Under the new order, retired employees of deficit schools and colleges can withdraw 100 percent of the amount accumulated in their CPF accounts after completing verification and mandatory financial counselling by the State Bank of India’s Laitumkhrah branch in Shillong.
The notification said SBI officials must explain the likely pension benefits available under annuity schemes and the long-term financial implications of opting out before permitting withdrawal. Employees will also have to submit a written undertaking acknowledging that they understand the consequences of withdrawing the entire corpus.
The government has also extended the opt-out provision to in-service employees of deficit schools and colleges, allowing them to discontinue participation in the CPF scheme and redirect their retirement savings into other pension or financial schemes of their choice.
According to the notification, employees choosing to opt out will no longer be entitled to benefits under the CPF scheme after withdrawal of their accumulated funds. Thereafter, their monthly CPF contribution component will be released directly along with their salary into their bank accounts.
The government further stated that employees who decide to continue under the CPF scheme must open a Permanent Retirement Account Number (PRAN) through designated SBI branches for transfer of accumulated CPF contributions.
The notification was issued by Meghalaya Education Department Commissioner and Secretary Vijay Kumar Mantri.
 Scheme, 2026, giving them the option to withdraw their full accumulated CPF amount or invest in alternative pension and financial instruments.){kind=link}