EPFO

Conference on Portability from Superannuation and Recognized Provident Funds to National Pension System (NPS)

Advertisement

Conference on Portability from Superannuation and Recognized Provident Funds to National Pension System (NPS); NPS has more than 1.71 crore subscribers with total Asset under Management (AUM) of more than Rs. 2.04 lakh crores.

A Conference on Portability from Superannuation and recognized Provident Funds to National Pension System (NPS) was organized by the Pension Fund Regulatory and Development Authority (PFRDA) in coordination with Willis Towers Watson in national capital. The Prime objective of the Conference was to provide a knowledge base platform to the Corporate by providing solutions to address the issues / challenges of portability of superannuation funds to NPS.

160 participants comprising Corporate, Points of Presence (POPs), Pension Funds, Central Record Keeping Agencies (CRAs) participated in the Conference.

Dr. B. S. Bhandari, Whole Time Member (Economics), PFRDA, highlighted the need to expand the coverage of NPS in an efficient and sustainable way. He asserted the fact that there are more employees in the Corporate – Private sector than in the government sector and hence there is a great potential for NPS in the corporate sector. PFRDA has been constantly engaging with its stake holders in the NPS and has been working with industry associations for promotion of NPS in the Corporate – Private sector. To make NPS entry easy and the interface user friendly, various modifications have been carried out in the product.

Shri Rohit Jain, Head, Willis Towers Watson (India), speaking on the occasion, told that the average life expectancy of persons in India has risen and hence there is a greater need for a retirement / pension product for all. Traditional pension products cover only 30% of the population. In this changing scenario there is a latent demand for product like NPS as there is no universal pension product.

Shri Hemant Contractor, Chairman, PFRDA in his key note address, informed that, earlier, people used to retire from the same job not only in the government sector but also in private sector. With opening up of economy people started getting more job opportunities switching jobs suitable to their skills and talents. Job switching has become more frequent and people seek more controls on their finances, when they start moving jobs and place from one to another. The concept of portability came in and people started thinking about having better control on their retirement savings.

Defined Benefit Pension schemes, which were predominant, became unsustainable not only for the government sector but also for the private sector because of various factors. A Defined Contribution scheme was therefore launched in 2004 which was initially only for Central Government employees, but which was later extended to State Government employees and later to the private sector. This scheme is the National Pension System (NPS), which is regulated by PFRDA.

NPS addressed the concerns of subscribers relating to portability and freedom of choice, and gradually started to pick up momentum in the private sector. The other features of NPS, namely, low cost, attractive returns, transparency, flexibility and domain expertise in each area of pension activity were the other factors which appealed to the private sector. Innovations and changes are made from time to time in the NPS product and processes, some recent examples being, introduction of two new life cycle funds, inclusion of alternative assets in investment portfolio, online entry and exit etc.

The entry age to NPS is now proposed to be increased to 65 years from 60 years and there is an option to continue up to age of 70 years.

The Chairman also mentioned that NPS should also be explored, as an additional retirement benefit, for corporates where superannuation funds are not available and employees are covered only under the mandatory EPFO schemes.

He highlighted the growth of 47% in AUM and 26% in number of subscribers in the last financial year (2016-17). He also made a reference to Atal Pension Yojana, the pension platform available for unorganized segment through Government of India / PFRDA and its year on year growth indicating the underlying demand for pension products in India.

During the conference, a panel discussion comprising industry experts such as Willis Towers Watson, HDFC Pension Funds, Siemens Limited, Vedanta Group and NSDL e-Governance Infrastructure Limited eyeing the opportunities, addressing the challenges / issues and preparation of necessary guidelines on superannuation funds and NPS portability was conducted.

In the second half, a Conference for Point of Presence (PoPs), the distribution channel for NPS, was conducted.

Shri Hemant Contractor, Chairman, PFRDA, in his keynote address stressed on the need for robust distribution of the NPS through the current distribution network being managed by POPs which are Banks and other financial institutions. He also laid emphasis on the fact that, the key to last mile connectivity is increased distribution network by the POPs by registration and activation of more branches and through awareness campaigns. He informed that PFRDA has empanelled IL&FS Skill Development Corporation Limited as its training agency to impart training on NPS to POPs and Corporate and urged the POPs to utilise the services of the Training Agency for training of their staff member on NPS.

During this conference, awards were distributed to the POPs, for their performance in FY 2016-17 under various categories.

Currently, NPS has more than 1.71 crore subscribers with total Asset under Management (AUM) of more than Rs. 2.04 lakh crores.

PIB

Stay updated on the go with CENTRAL GOVERNMENT NEWS App. Click here to download it for your device.

Be the first to comment - What do you think?  Posted by admin - September 15, 2017 at 5:33 pm

Categories: EPFO, Pension   Tags: , , , , ,

Agreements with Banks for easy deposit & withdrawals of EPF Contributions

Agreements with Banks for easy deposit & withdrawals of EPF Contributions

The Employees’ Provident Fund Organisation (EPFO) has tied up/entered into agreement with ten banks to collect EPFO dues and to make payments of Provident Fund (PF) withdrawals, pension and insurance to EPFO beneficiaries. These banks are State Bank of India, Punjab National Bank, Indian Bank, Allahabad Bank, Union Bank of India, Bank of Baroda, HDFC Bank, ICICI Bank, Axis Bank and Kotak Mahindra Bank.

The main objective of the multi banking arrangement is to provide more options to the employers to remit the Employees’ Provident Fund (EPF) contribution directly from their bank accounts. This will not only make the transactions cost effective but also ensure real time transfer of funds through net banking.

This information was given by Shri Bandaru Dattatreya, the Minister of State (IC) for Labour and Employment, in a written reply to a question in Rajya Sabha, today.

PIB

Be the first to comment - What do you think?  Posted by admin - August 2, 2017 at 5:51 pm

Categories: EPFO   Tags: , ,

Inoperative EPF Accounts

Inoperative EPF Accounts

The Government vide notification no. G.S.R. 1065 (E) dated 11.11.2016 has amended paragraph 72(6) of the Employees’ Provident Funds (EPF) Scheme, 1952 wherein changes have been made in the conditions leading to a Provident Fund (PF) account becoming an Inoperative Account. As per amended definition of Inoperative Account (w.e.f. 11.11.2016), an account becomes inoperative after the age of 58 years, i.e., 36 months after the retirement age of 55 years. The details of inoperative accounts and amounts involved therein, consequent upon implementation of the above notification, have not been ascertained by Employees’ Provident Fund Organisation (EPFO) presently as the date of birth in respect of many employees is not available in the EPFO database presently.

As per paragraph 60(6) of EPF Scheme, 1952, interest shall not be credited to the account of a member from the date on which it has become an inoperative account under paragraph 72(6) of EPF Scheme, 1952. However, as per amended definition, an account shall be classified as Inoperative after the member attains the age of 58 years. Hence, interest shall be credited to the account of a member upto the age of 58 years.

This information was given by Shri Bandaru Dattatreya the Minister of State (IC) for Labour and Employment, in a written reply to a question in Lok Sabha, today.

Be the first to comment - What do you think?  Posted by admin - July 24, 2017 at 6:11 pm

Categories: EPFO   Tags: , , , , ,

Multiple Banking System for EPFO contribution and payments by Signing of Agreement between EPFO and Public & Private Sector Banks

Multiple Banking System for EPFO contribution and payments by Signing of Agreement between EPFO and Public & Private Sector Banks

In keeping with the Government’s mandate for facilitating ‘Ease of doing business’, EPFO has taken a step further. In the august presence of Shri Bandaru Dattatreya, the Minister of State (Independent Charge) for Labour & Employment, EPFO has entered into agreement for collection of EPF dues from employers and payment to beneficiaries as well through multiple-banks in place of erstwhile single banking system here today. Collections of EPF dues have been started with PNB, Allahabad Bank, Indian Bank, Union Bank of India in addition to State Bank of India through direct online mode.

Now, EPFO has signed agreement with another five banks viz. Bank of Baroda, ICICI Bank, HDFC Bank, Axis Bank, Kotak Mahindra Bank for collection of remittances and payments to beneficiaries, at zero transaction charges.

It will facilitate all the stakeholders of EPFO by allowing the employers to deposit their EPF dues in a hassle-free, anywhere, anytime manner and PF members by direct payments of their bank accounts.

Consequent upon signing of agreement, the employers having bank account with these banks may deposit EPF dues directly in EPFO’s account using internet banking on real time basis instead of going through the aggregator mode.

PIB

Be the first to comment - What do you think?  Posted by admin - July 5, 2017 at 6:40 pm

Categories: EPFO   Tags: , , ,

EPFO signs MoU with HUDCO under new Housing Scheme of EPF & MP Act-1952

EPFO signs MoU with HUDCO under new Housing Scheme of EPF & MP Act-1952

Dr. V.P. Joy, Central Provident Fund Commissioner and Dr. M. Ravi Kanth, CMD HUDCO signed a Memorandum of Understanding (MoU) in the august presence of Union Minister of Urban Development, Housing & Urban Poverty Alleviation, Shri M. Venkaiah Naidu and the Minister of State (Independent Charge), Labour & Employment, Shri Bandaru Dattatreya for facilitating “Housing for All by 2022″ here today.

By taking one step forward to achieve Hon’ble Prime Minister Shri Narendra Modi’s vision of Housing for all by 2022, EPFO has amended EPF Scheme 1952 vide Gazette notification No. G.S.R. 351(E) dated 12th April, 2017 to provide assistance in acquiring affordable houses to the EPF members by allowing withdrawal from the provident fund to the extent of 90% of the total PF accumulation and also facilitating payment of installment of housing loan. The major objective of this scheme is to assist in building houses for workers integrating with housing programmes of the Central and State Governments.

The salient features of this scheme are:-

1. Bringing together all stake holders namely, workers, employers, financial institutions & housing agencies to provide workers’ need for Housing.

2. Forming Housing societies for collective action, ten or more members can register a society. Society will arrange housing units from public/private housing providers, apply to the concerned PF office through the society for getting Certificate of Fund & Contribution.

3. Channelizing the corpus of EPF savings to build affordable housing for the working class, withdrawal of up to 90% of accumulations in members Provident Fund Accounts is allowed.

4. Banks/Financing Agencies can make use of certificate issued by Commissioner to arrive EMI for withdrawal under Para 68 BD (3) of EPF Scheme.

5. Full/ Part repayment of loans out of monthly P.F. Contributions.

6. Eligibility condition relaxed for such withdrawal, now membership period of EPF reduced from 5 years to 3 years.

7. Members can avail interest subsidy up to 2.20 lakh in Credit Linked Subsidy Scheme (CLSS) through Ministry of Housing and Urban Poverty Alleviation through its Nodal Agency HUDCO and National Housing Bank for those members whose annual income is less that the amount specified in Pradhan Mantri Awas Yojna.

8. Individual housing loan repayment can be done by authorizing EPFO to pay installments directly to the lending agency.

PIB

Be the first to comment - What do you think?  Posted by admin - June 24, 2017 at 1:53 pm

Categories: EPFO   Tags: , , , , , , ,

Withdrawal under paragraph 68-BD of EPF Scheme, 1952 for housing needs of the PF members

Employees Provident Fund Organisation
(Ministry of Labour & Employment, Govt. of India)
Head Office
Bhavishya Nidhi Bhawan, 14-Bhikaiji Cama Place, New Delhi-110066

No: WSU/39(1)2017/Housing Scheme/4106

Date: 24.05.2017

To
All Addl. CPFC (HQ/ Zone),
Regional P.F. Commissioners-incharge of
Regional Offices.

Sub: Withdrawal under paragraph 68-BD of EPF Scheme, 1952 for housing needs of the PF members.
Ref: HO circular dated of even numbers dated 21.04.2017, 02.05.2017 & 19.05.2017

Sir,
Please refer to the above said subject.

  1. There are a number of State Housing Boards or other authorities owned by the Government which construct and sell houses. In certain cases their houses remain unsold. Considering this, it is advised that RPFCs-incharge of ROs should contact all such Housing Board/authorities in their jurisdiction and persuade them for allotment of such unsold houses directly to the PF Workers’ Cooperative Societies but EPFO shall not recommend or be associated in the agreement with any particular housing agency/housing society. RPFCs should also discuss the issue with PF Workers’ Union and employers of establishments for formation of cooperative societies so that the concerned society may also negotiate with such Housing Board/ authorities.
  1. Accordingly, it is advised that provisions of paragraph 68-BD of EPF Scheme, 1952 be given due focus and publicity by all such possible means in the interest of the workers.

 

Yours faithfully,

S/d,
(K.L. Taneja)
Addl. Central P.F. Commission (Housing)

Source: epfindia.gov.in

Be the first to comment - What do you think?  Posted by admin - May 29, 2017 at 5:27 pm

Categories: EPFO   Tags: , , ,

EPFO: To hike take-home pay of employees, government plans to cut employers contribution to 10%

EPFO: To hike take-home pay of employees, government plans to cut employers contribution to 10%

Chief provident fund commissioner (CPFC) V P Joy told FE the matter is on the agenda and that the opinion of the CBT members would be sought.

In a move that will increase the take-home pay of employees, the government plans to prune employers’ contribution to the employees’ provident fund (EPF) to 10% from 12% currently. Sources said the proposal to trim employers’ contribution, aimed at promoting formal employment, will be placed before the central board of trustees (CBT), the highest decision-making body of the employees’ provident fund organisation (EPFO), at its meeting on Saturday.

Chief provident fund commissioner (CPFC) V P Joy told FE the matter is on the agenda and that the opinion of the CBT members would be sought. Joy denied the government was putting pressure on it to take up the matter with the CBT members. Apart from representatives from both the Centre and the states, CBT is represented by the employers’ and workers’ organisations including central trade unions.

This proposal is in line with the government’s policy to extend social security benefits to all workers and at the same time ensure ease of doing business. “The labour ministry feels that by reducing the quantum of employer’s contribution, it can persuade more units to extend the EPF benefits to its workers,” a labour ministry official said. The EPFO currently has 4.15 crore active subscribers.

Under the present law, it is mandatory for units employing 20 or more persons to provide EPF benefits to workers. While employees contribute 12% of the basic pay to EPF, the employer contributes 8.33% towards the employees’ pension scheme and 3.67% to the EPF itself.

Additionally, employers also pay 0.5% towards EDLI, 0.65% as EPF administrative charges and 0.01% as EDLI handling fee, taking the total contribution to 13.61%.

“It is to be condemned that the Centre’s labour department has proposed a reduction in the employers’ contribution to the EPF from 12% to 10% of the basic pay. While the government claims the rights of the workers will be safeguarded, this move to reduce EPF contribution of employers exposes the pro-corporate policies of the government and its only concern is “ease of doing business,” said CITU General secretary Tapan Sen. AITUC’s national secretary DL Sachdeva also said that the proposal would be protested at the meeting.

Vrijesh Upadhyay, general secretary, Bharatiya Mazdoor Sangh (BMS), the biggest trade union and affiliated to the RSS, said savings should rise proportionately with the income.

There has been discussion yet on whether the share of employees too will be lowered, sources said should it be decided that employers will contribute 10%. Driven by a policy to extend social security benefits to workers who are currently outside its ambit, the government was considering lowering employers’ liability towards EPF in the construction sector to 10% of the basic pay from 12% now. Employers with some other sectors already get the benefit.

EPFO has, of late, been on a enrolment drive. Enthused by an encouraging response to its first three-month enrollment programme, through which over 30 lak new subscribers joined the scheme, EPFO extended the programme for another three months with effect from April 1.

Source: www.financialexpress.com

Be the first to comment - What do you think?  Posted by admin - May 27, 2017 at 1:44 pm

Categories: EPFO   Tags: , , , ,

EPF members now required to submit self-declaration for advance in case of illness of members/ dependents

EPF members now required to submit self-declaration for advance in case of illness of members/ dependents

Press Information bureau
Ministry of Labour & Employment

28-April, 2017 12:51 IST

EPF members now required to submit self-declaration for advance in case of illness of members/ dependents

EPF members will now only be required to submit a self-declaration for the advance in case of illness of members/ dependents. Differently abled members will also get advance on the basis of self-declaration. A member will no longer be required to submit any medical certificate or any other certificate or document or proforma whatsoever to avail advances under paragraph 68-J or under paragraph 68-N of EPF Scheme 1952.

Ministry of Labour & Employment has amended Paragraph 68-J and Paragraph 68-N of Employees’ Provident Fund Scheme, 1952 and It will come into force from the date of its publication in the official Gazette. According to it, a member would only be required to submit a self-declaration, which has already been included in the composite claim form, to avail advance under the EPF Scheme in case of illness of members/ dependent and also in case of differently abled members.

This is in continuation of initiatives taken by EPFO as part of next phase of its e-governance reforms with a view to make the services of EPFO available to its stakeholder in an efficient and transparent manner. An administrative order was issued on 20.02.2017 in the matter of Introduction of Composite Claim Forms (Aadhar and Non-Aadhar ) to replace existing Claim Forms No. 19, 10C & 31 and Forms No. 19 (UAN), 10C(UAN) & 31 (UAN). EPFO has since implemented Universal Account Number (UAN) for its subscribers. It is now possible for subscribers, who have seeded their UAN with Aadhar Number and Bank account details, to submit claim forms directly to EPFO without the attestation of employers.

Source : PIB News

Be the first to comment - What do you think?  Posted by admin - April 30, 2017 at 7:35 pm

Categories: EPFO   Tags: , , ,

Aadhaar Seeding Application launched by Shri Bandaru Dattatreya

Aadhaar Seeding Application launched by Shri Bandaru Dattatreya

Minimum assured amount on death in service and loyalty cum life benefit to EDLI members on superannuation recommended to Government

Employee Enrolment Campaign enrolls about 5 million workers in EPFO upto 31st March, 2017

The Central Board (EPF) under the chairmanship of Union Minster of State for Labour and Employment (Independent Charge) Shri Bandaru Dattatreya held its 217th special meeting in New Delhi.

In pursuance to the policy of the Government for optimum use of information technology for efficient service delivery and widening the reach of EPF benefits, Hon’ble Minister of Labour & Employment, Sh. Bandaru Dattatreya launched Aadhaar Seeding Application. The EPFO has developed this Aadhaar seeding application with support of the Common Service Centers (CSC) and CDAC. The CSCs are ICT enabled front end service delivery points at the village level for delivery of Government and private services. With the implementation of Aadhaar Seeding Application, now Provident Fund member or pensioner can walk in any of the field offices of EPFO or CSC outlets with UAN & Aadhaar and seed the Aadhaar with the UAN.

The Board has recommended a proposal of extending minimum assured benefit of Rs.2,50,000/- (Rs. Two lakh fifty thousand) on death of EDLI member. Provisions have also been recommended in EDLI Scheme for Loyalty cum life benefit to members on superannuation on completion of 58/60 years of age/total and permanent disablement with minimum 20 years of contributory service as a pilot project for two years. Thereafter the scheme will be reviewed.

Central Board also took note of the fact that EPFO has enrolled 49,39,929 workers during 01.01.2017 to 31.03.2017.

PIB

Be the first to comment - What do you think?  Posted by admin - April 13, 2017 at 6:32 pm

Categories: EPFO   Tags: , , , ,

GPF Rules

GPF Rules

With effect from 7th March 2017, Government has simplified and liberalised the conditions for taking advance from the fund by the subscribers for education, illness, purchase of consumer durables. Conditions and procedures for withdrawal from the fund for the purpose of education, illness, housing, purchase of motor vehicles etc. have also been liberalised. No documentary proof is required to be submitted now for advance and withdrawal applications. A simple declaration by the subscriber is sufficient. A time limit for sanction and payment of advance/withdrawal has also been fixed.

There is no proposal under consideration of Government to increase/link the rate of interest on GPF at parity with that of EPF. The interest rates on EPF are decided on the recommendations of the Central Board of Trustee (EPF) taking into account the yearly income from the investment made by EPFO. The GPF interest rate is presently fixed at par with that of PPF interest rate.

This was stated by the Minister of State in the Ministry of Personnel, Public Grievances and Pensions and Minister of State in the Prime Minister’s Office, Dr. Jitendra Singh in a written reply to question by Dr. Sunil Baliram Gaikwad, Kunwar Haribansh Singh, Shri T. Radhakrishnan, Shri Gajanan Kirtikar and Shri Bidyut Baran Mahato in the Lok Sabha today.

PIB

Be the first to comment - What do you think?  Posted by admin - April 12, 2017 at 6:41 pm

Categories: EPFO   Tags: , , , ,

Development of EPFO APP – UMANG

Development of EPFO APP

Employees’ Provident Fund Organization (EPFO) is developing online claims settlement process by receiving application online. The application will be integrated with Unified Mobile App for New-age Governance (UMANG) App to receive the claims online. However, time frame to rollout the same has not been finalized. EPFO has engaged Centre for Development of Advanced Computing (C-DAC), Pune as its technical consultant for upgradation of its technology.

Necessary hardware by way of the latest technology for servers, storages & Networking equipments have been installed at three data centers in Delhi, Gurugram & Secunderabad.

This information was given by Shri Bandaru Dattatreya, the Minister of State (IC) for Labour and Employment, in written reply to a question in Lok Sabha today.

PIB

Be the first to comment - What do you think?  Posted by admin - April 11, 2017 at 4:25 pm

Categories: EPFO   Tags: , , , ,

Online Facility for Settlement of Claims in EPFO

Online Facility for Settlement of Claims in EPFO

Employees’ Provident Fund Organisation (EPFO) has taken various steps to provide various online services like for claims of provident fund, final settlement, withdrawals and pension fund withdrawal, etc. to its members in a quick and transparent manner. However, no specific date has been fixed. Receipt of transfer claims online has already been introduced by EPFO.

The claims other than transfer claims are received manually but processed on Computer Systems and the benefits credited to members by way of Core Banking Solution (CBS) and National Electronic Fund Transfer (NEFT) to their bank account.

Out of 120 field offices of EPFO, 110 field offices have already been connected with a central server.

This information was given by Shri Bandaru Dattatreya, the Minister of State (IC) for Labour and Employment, in written reply to a question in Rajya Sabha.

PIB

Be the first to comment - What do you think?  Posted by admin - April 6, 2017 at 3:51 pm

Categories: EPFO   Tags: , ,

EPF pensioners to get medical benefits: Bandaru Dattatreya

EPF pensioners to get medical benefits: Bandaru Dattatreya

New Delhi: Nearly 58 lakh people Employees Provident Fund pensioners will now get medical benefits, Labour Minister Bandaru Dattatreya said in the Lok Sabha today.

“Regarding the pensioners, we are going to give the pensioners benefit under the ESIC (Employees State Insurance Corporation) to those who are retired pensioners. We will be providing all medical services to the retired pensioners. 58 lakh pensioners will be benefited,” he said.

Dattatreya was replying to a debate on a private member’s resolution moved by RSP member N K Premachandran on ‘Steps To Ensure Welfare of Employees Provident Fund Pensioners’.

A meeting of the EPFO Board yesterday had on its agenda a proposal to provide health insurance scheme to pensioners of the Employees Pension Scheme through Employees State Insurance Corporation (ESIC).

Although the board agreed in principle to approve the proposal but a final call would be taken on this in the next meeting of the CBT.

Earlier, back of the envelop calculations done by ESI had estimated Rs 200 monthly premium per person for providing health cover under its scheme to the EPFO pensioners.

The proposal is aimed at providing health cover to EPFO pensioners, who get very little amount as pension and hence healthcare is out of their reach.

Hukum Narayan Yadav (BJP), while participating in the debate, demanded pension for farmers and agricultural labourers.

Participating in the discussion, Anandrao Adsul (Shiv Sena) said that unclaimed pension fund of around Rs 27,000 crore which has been deposited should be utilised for the people.

Ravindra Kumar Rai (BJP) said that Pandit Deendayal Upadhyay was of view that policies of the country should be according to the country and added the present government under the Chairmanship of Prime Minister Narendra Modi “we are leading the same direction.”

Contending that the present government wants to spread the ray of hope for those who are suffering from destitute, Rai said “We are not working for the political intent but with social ethos.”

He also suggested that in every district some amount should be kept aside for the needy which should be allocated to them when there is a need.

Pashupati Nath Singh (BJP) said the unclaimed fund of about Rs 27,000 crore lying with EPFO belongs to poor and it should be utilised to provide relief to the poor only.

Poor people due to lack of awareness or information about rules for drawal could not withdraw so it is lying unused with the the EPFO, he said.

Government has taken various steps to make India a pensioned society, he added.

Due to efforts of the government, the shift of PF fund from one organisation to other has become seamless, said Jugal Kishor Sharma (BJP).

PTI

Be the first to comment - What do you think?  Posted by admin - April 1, 2017 at 2:00 pm

Categories: EPFO   Tags: , , , , ,

Death Claim settled within 20 days from the date of receipt

Death Claim settled within 20 days from the date of receipt

GOVERNMENT OF INDIA
MINISTRY OF LABOUR AND EMPLOYMENT
LOK SABHA
UNSTARRED QUESTION NO: 3931

ANSWERED ON: 27.03.2017

Death Claims

G. HARI
Will the Minister of LABOUR AND EMPLOYMENT be pleased to state:-

(a) whether the Employees Provident Fund Organisation (EPFO) proposes to settle PF money claimed after death of an employee within seven days from 20 days at present;

(b)if so, the details thereof;

(c)whether all the death cases claims will be given top priority and officers in charge at all EPF offices will personally monitor such claims on day-to-day basis; and

(d) if so, the details thereof?

ANSWER
MINISTER OF STATE (IC) FOR LABOUR AND EMPLOYMENT
(SHRI BANDARU DATTATREYA)

(a) & (b): As per paragraph 72(7) of the Employees’ Provident Funds (EPF) Scheme, 1952, the claim complete in all respects submitted along with the requisite documents shall be settled and benefit amount paid to the beneficiaries within 20 days from the date of its receipt by the Commissioner. The field offices of Employees’ Provident Fund Organisation (EPFO) have been directed to settle claims in cases of deaths within seven days of receipt of such claims.

(c) & (d): Yes, Madam. Public Relation Officer and officials in the Facilitation Centres of EPFO have been instructed to scrutinise the claim forms received in respect of death cases and guide the claimants for submission of all required documents in one go only. An official has been specially earmarked to handle such claims. Regional Provident Fund Commissioners have been directed to personally monitor the death cases on day-to-day basis.

Loksabha Q&A

Be the first to comment - What do you think?  Posted by admin - March 27, 2017 at 3:55 pm

Categories: EPFO   Tags: , , , ,

EPFO Invest more than Rs.18 crore in ETFs

EPFO Invest more than Rs.18 crore in ETFs

Employees Provident Fund Organisation (EPFO) is investing in Exchange Traded Funds (ETFs) based on Nifty 50, Sensex and Central Public Sector Enterprises (CPSE) Indices. EPFO does not invest in shares and equities of individual companies.

The total amount invested by EPFO in ETFs as on 28th February, 2017 is as under:

(i) Nifty 50 and Sensex Index based ETFs: Rs. 17,105 crore
(ii) CPSE Index based ETF: Rs. 1,504 crore.

The Employees Provident Funds & Miscellaneous Provisions (EPF & MP) Act, 1952 is applicable to every establishment employing 20 or more persons which is either a factory engaged in any industry specified in Schedule-I of the Act or an establishment to which the Act has been made applicable by the Central Government by notification in the Official Gazette.
An Employees Enrolment Campaign, 2017 has been launched for the period 01.01.2017 to 31.03.2017 to bring in more workers under the ambit of EPFO. Under the campaign, an employer, whether already covered or yet to be covered, can enroll employees who remained un-enrolled for any reason between 01.04.2009 and 31.12.2016 by making a declaration of such employees during the campaign period. Such declaration shall be valid only in respect of employees who are alive as on 1st January, 2017 and no proceedings under Section 7A of the EPF & MP Act, 1952 or under paragraph 26B of the Employees Provident Funds (EPF) Scheme, 1952 or under paragraph 8 of the Employees Pension Scheme (EPS), 1995 have been initiated against their establishment or employer, as the case may be, to determine the eligibility for membership of such employees.

This information was given by Shri Bandaru Dattatreya, the Minister of State (IC) for Labour and Employment,in written reply to a question in Rajya Sabha today.

PIB

Be the first to comment - What do you think?  Posted by admin - March 22, 2017 at 6:51 pm

Categories: EPFO   Tags: , , , , ,

EPFO takes various steps for speedy settlement of claims

EPFO takes various steps for speedy settlement of claims

The Employees Provident FundsOrganization (EPFO) has taken various steps for speedy settlement of claims which inter alia include:

  • Composite Claim Form (Aadhaar) and Composite Claim Form (Non-Aadhaar) has been introduced by replacing the erstwhile Claim Forms No. 19, 10C and 31, with a view to simplify the submission of claims by the subscribers. The Composite Claim Form has been further simplified to include self-certification by EPF subscribers. The Composite Claim Form (Aadhaar) can be submitted to the EPFO without attestation of their employers.
  • EPFO has mandated to settle claims within 20 days.
  • Online Transfer Claim Portal (OTCP) has been introduced to facilitate seamless transfer of claims.
  • An online payment facility has been developed for employers for payment of dues. The internet banking (INB) facility enhances efficiency and payment and ensures anytime, anywhere online access while usage of existing internet bank account to make payments online.
  • National Electronic Fund Transfer (NEFT) has been introduced for payments.

The Employees Provident Funds & Miscellaneous Provisions (EPF & MP) Act, 1952 is applicable to every establishment employing 20 or more persons which is either a factory engaged in any industry specified in Schedule-I of the Act or an establishment to which the Act has been made applicable by the Central Government by notification in the Official Gazette.

There was a total of 17.14 crore Employees Provident Fund (EPF) accounts as on 31.03.2016. 12.21 lakh accounts were pending for updation. As per consolidated Annual Accounts of EPFO for the year 2015-16, the closing balance in Interest Account as on 31st March, 2016 is Rs. 45,135.25 crore.

This information was given by Shri BandaruDattatreya, the Minister of State (IC) for Labour and Employment,in written reply to a question in Lok Sabha.

PIB

Be the first to comment - What do you think?  Posted by admin - March 20, 2017 at 10:25 pm

Categories: EPFO   Tags: , , , ,

EPF Members to Withdraw upto 90 % Fund for Purchase of House

EPF Members to Withdraw upto 90 % Fund for Purchase of House
Government to Amend EPF Scheme, 1952 to Enable EPF Members to Withdraw upto 90 Percent Fund for Purchase of HouseThe Government has taken a decision for modification in the Employees’ Provident Funds (EPF) Scheme, 1952 to add a new paragraph 68 BD under which a member of Employees’ Provident Fund (EPF), being a member of a co-operative society or a housing society having at least 10 members of EPF, can withdraw upto 90 per cent from the Fund for purchase of dwelling house/flat or construction of dwelling house/acquisition of site. Monthly installments for repayments of any outstanding payments or interest may also be paid from the amount standing to the credit of the member, to the Government/housing agency/primary lending agency or banks concerned.

The total number of Employees’ Provident Fund (EPF) member accounts as on 31.03.2016, as per Annual Report for 2015-16, is 17.14 crore. On an average, contributions have been received in respect of 3.76 crore members during the year 2015-16. The withdrawal facility from the Provident Fund (PF) account under the Scheme will be available to only those PF members who fulfill the conditions prescribed.

This information was given by Shri Bandaru Dattatreya, the Minister of State (IC) for Labour and Employment, in written reply to a question in Rajya Sabha.

PIB

Be the first to comment - What do you think?  Posted by admin - March 16, 2017 at 6:30 pm

Categories: EPFO   Tags: , , , ,

Last Date Extended to 31.3.2017 for Submission of Digital Life Certificate

Last date of submission of Digital Life Certificate through Jeevan Pramaan Patra extended upto 31st March 2017

EPF & MP Act, 1952 made applicable to all staff employed in ECHS on contractual basis

A single page composite claim form in death cases replaces Form 20, form 5-IF and Form 10-D

Noticing that many pensioners are yet to submit Aadhaar authenticated Jeevan Pramaan as life certificate for continuation of drawal of pension, the EPFO has further extended the last date of submission of Digital Life Certificate through Jeevan Pramaan Patra upto 31st March 2017. Earlier the last date was 28th February 2017.

Members and pensioners of the Employees Pension Scheme, 1995 are required to furnish Aadhaar number by 31st March 2017. In case a member has not been allotted Aadhaar Number, a copy of Aadhaar Enrolment ID slip is required to be attached for settlement of claim under EPS, 1995, namely for pension processing and monthly pension payments. Aadhaar number however is not required in case a member of pension scheme having less than 10 years of service chooses to withdraw by making an application in Form 10-C.

An Employee Enrolment Campaign-2017, started by EPFO on January 1st 2017 to cover left out workers, continues upto 31st March 2017. Under the scheme:

  • The employee’s share of contributions if not deducted by the employer is waived.
  •  Nominal damages to be paid by the employer, in respect of the employees for whom declaration has been made under this campaign, is at the rate of Rupee One per annum.
  • Administrative charges have been waived.

Even though the EPF & MP Act, 1952 does not differentiate between casual, contractual and regular employees, it was noted that a large number of contractual employees hired by principal employer including those by the government departments, PSU and autonomous Organizations have remained out of coverage under EPFO. It is the duty of the principal employer to ensure compliance of their outsourced / regular / contract / casual / daily wager to the schemes under EPF Act.
To ensure coverage of workers, principal employers have been advised to ensure that their contractors are registered with EPFO before award of any contract or making any payments. EPFO provides relevant information in this regard to principal employers online.

A health care scheme called ECHS was formulated by Ministry of Defence for its ex-servicemen. The contractual workers of ECHS till now were deprived of the social security benefits under EPFO. The ECHS now has been brought under the ambit of the EPF Act. Ministry of Defence has issued necessary directions to the ECHS for enrolling their contractual staff. Similarly, all eligible workers engaged by contractors working with Military Engineering Services (MES) and Indian Railways have also being requested to ensure coverage of contractual employees under EPFO.

Towards continuous strive to bring increased conveniences and efficiency, a single page Composite Claim Form (Aadhar) replaces Forms No. 19 (UAN), 10C (UAN) & 31(UAN) for subscribers seeding their Aadhar number with UAN. This can be submitted without the attestation of employers. For subscribers who are yet to seed Aadhaar and Bank details with their UAN, a new Composite Claim Form (Non-Aadhar) replaces the existing Forms No. 19, 10C & 31.

In addition, a Composite Claim Form in death cases replaces the existing Forms No, 20, 5-IF and 10-D. The claimants can apply for claim of Provident Fund, Insurance Fund and monthly pension through this single page composite claim form in case of death of a member.

Source: PIB News

Be the first to comment - What do you think?  Posted by admin - March 8, 2017 at 7:08 pm

Categories: EPFO   Tags: , , , , ,

EPFO: Here are 4 points govt is working on the retirement scheme to make it more subscriber friendly

EPFO: Here are 4 points govt is working on the retirement scheme to make it more subscriber friendly

After last year’s fiasco over taxing of provident fund, the government seems to be working overtime to make changes to the retirement scheme. The government has introduced a slew of measures to make the Employee provident Fund Organsiation or EPFO more subscriber-friendly, while it is reportedly proposing more steps.

Here are the steps the government has taken or has proposed to take and what they mean to you:

1) The EPFO recently simplified the norms for provident fund claims by coming out with a single one-page form for all types of claims. This means you won’t need to fill forms like Form 19, Form 10C, and Form 31 anymore to make the claims. These forms were being accepted for PF Final Settlement, EPS Pension withdrawal and PF Partial withdrawal respectively in the past.

The new form called the new Composite Claim Form (CFF) are of two types called CCF (Aadhaar) and CCF (non aadhaar). Even the process has now been made simple where the form can be submitted to EPFO which bypasses the employer completely if you are Aadhaar complaint and the account is seeded with your bank details. Here you will need to fill the CCF (AAdhaar) form and for those who are not Aadhaar compliant, they will have to fill the CCF (non aadhaar), and include the employer in the process.

Even taking advances from your PF corpus has been made easy, as going forward you don’t need to provide any kind of document as proof. The recent order by the government says, “submission aadhar compliant and non-Aadhar compliant form duly signed by the EPF subscriber shall be construed as ‘self-certification for the above partial withdrawals for which no documents would be required to be submitted to the EPFO offices.” In short, less amount of paper work for employees as well as faster resolution of claims will be set in place.

2) By May this year EPFO is planning to launch an online facility which will simplify the claim process, EPFO Central Provident Fund Commissioner VP Joy told recently. Under the proposed scheme, the claims are expected to be settled within 20 days of submitting the form. It usually take 4-5 months for the process to get done and money to credit into your bank account. The institution is working to make the entire process computerised.

3) In another move the government is considering decreasing the employers liability towards Employees Provident Fund (EPF) in the construction sector to 10 percent of the basic pay as against the current 12 percent, as reported by The Financial Express. Reducing the amount of employer’s contribution, will possibly nudge more building/construction units to extend the EPF benefits to workers. Last year, the Delhi High Court had passed an order stating that all construction workers need to be mandatorily enrolled under the EPF scheme. The Hindu Business Line had reported, “Builders had expressed concerns over “ambiguity” in the eligibility of workers, many of whom were employed on a casual or short-term basis.” And enrollment of construction workers in PF was below expectations.

4) EPFO is expected to launch a special housing scheme this month, which will make life of crores of members easier if they have or plan to avail a home loan. This scheme will enable members to make down payments or pay EMIs from their EPF account to buy houses.

According to PTI, the subscribers as well as their employers would be required to form a group housing society which would further tie up with banks and builders or sellers of homes so that EPFO members can buy homes. The scheme is likely to be launched anytime after 8 March.

Explainer: The granular details are yet to be out, only time will tell if this scheme is good.

Do keep tracking this space as we bring you more information when the scheme is launched.

Be the first to comment - What do you think?  Posted by admin - March 7, 2017 at 10:12 am

Categories: EPFO   Tags: , , , , ,

Furnishing of Aadhaar mandatory for final settlement of Pension claims

Furnishing of Aadhaar mandatory for final settlement of Pension claims

Ministry of Labour & Employment
Press Information Bureau,
Government of India

02-March, 2017

The EPFO has clarified that obtaining of Aadhaar should be mandatory for the time being only for final settlement of Pension and not in withdrawl cases. The EPFO had extended the date of submission of Aadhaar Number authentication by the members of Employees’Pension Scheme 1995 upto 31st March 2017.

However, news item appearing in few dailies suggested that Aadhaar is not required in settlement of pension claims. Accordingly, the EPFO reiterated that the requirement of submitting Aadhaar is not insisted for the time being only in withdrawal benefit cases under Employees’ Pension Scheme, 1995. Furnishing of Aadhaar is still mandatory for final settlement of pension and scheme certificate cases.

Be the first to comment - What do you think?  Posted by admin - March 2, 2017 at 2:34 pm

Categories: EPFO, Pension   Tags: , , , , ,

Next Page »