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Posts Tagged ‘EPFO’

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

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

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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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Retirement fund body EPFO launches one page EPF claim withdrawal form

Retirement fund body EPFO launches one page EPF claim withdrawal form

Highlights:

1. For EPF subscribers whose Universal Account Number (UAN) is linked to their Aadhaar and bank account number, they can approach the EPFO directly for claims, bypassing the employers

2. In case of full withdrawal from EPF accounts, subscribers are required to mention only their names, registered mobile number, UAN, Aadhaar number, date of joining and leaving the company

3. For partial withdrawals from EPF accounts, subscribers are not required to submit extra documents

With an aim to provide withdrawal ease to its EPF subscribers, retirement fund body Employees’ Provident Fund Organisation(EPFO) has started a simplified one page claim withdrawal form, The Hindustan Times reported.

Employees’ Provident Fund (EPF) allows withdrawal if subscriber is unemployed for at least two months or partial withdrawals for events such as medical emergencies, children’s education or buying a house, cited report on Monday.

For EPF subscribers whose Universal Account Number (UAN) is linked to their Aadhaar and bank account number, they can approach the EPFO directly for claims, bypassing the employers, it said.

Earlier, EPF subscribers had to fill up form 19 for complete withdrawal, form 10C for pension fund scheme certificate to retain membership of Employees’ Pension Scheme or to claim withdrawals, and form 31 for partial withdrawals.

Now, with the EPFO’s introduction of the new form called the composite claim form all forms have been merged into one. It has launched two types of EPF withdrawal forms- Aadhaar and non-Aadhaar forms.

The Aadhaar-based composite form is meant for individuals who have activated their UAN and linked it with their Aadhaar and bank account number, and whose details are embedded in the UAN portal, the news report said.

According to the report, in case of full withdrawal from EPF accounts, subscribers are need to mention only their names, registered mobile number, UAN, Aadhaar number, date of joining and leaving the company.

Moreover, for partial withdrawals, there is no longer need of extra documents. Subscribers have to mark the purpose for which they need the money and how much. Sign the form, attach a cancelled cheque and then the subscribers can go ahead.

The non-Aadhaar form needs details of EPF subscribers such as date of birth, father’s name and bank account details. It has to be signed by subscribers and their employers.

The report citing the new form further stated that for partial withdrawals subscribers do not have to submit proof.

For instance, if partial withdrawal was for a wedding (of self or children), EPF subscriber had to give supporting documents such as the wedding invitation card. In the new form, subscriber’s signature is enough. But there is a disclaimer at the bottom which states that if the funds are used for any other purpose, the subscriber is liable to return the money with penal interest.

But if partial withdrawal is for a medical emergency, subscriber still need to submit proof like medical certificate and certificate by the employer that employees’ state insurance (ESIC) facility is not available to the member, it added.

EPFO plans to launch an online facility from May this year for withdrawals, but this can only be used by individuals with Aadhaar and bank account-linked UAN, cited the report.

Be the first to comment - What do you think?  Posted by admin - February 28, 2017 at 3:57 pm

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After 7th Pay Commission salary hikes, move on to raise minimum wage ceiling under EPF

After 7th Pay Commission salary hikes, move on to raise minimum wage ceiling under EPF

The minimum wage ceiling under the Employees’ Provident Fund (EPF) could soon be raised to Rs 25,000 from the existing Rs 15,000.

A hike in the wage limit as proposed would mean all employees drawing basic salary Rs 25,000 would have to compulsorily contribute to the provident fund.

The minimum wage ceiling under the Employees’ Provident Fund (EPF) could soon be raised to Rs 25,000 from the existing Rs 15,000. A proposal to to enhance the limit is likely to be sent by the Employees’ Provident Fund Organisation (EPFO) to the government. A decision to propose the change has been taken at a recent meeting of Sub-committee of the Central Board of Trustees, EPFO, on contract workers held on November 7. Central Board of Trustees (CBT) is the highest decision-making body of the EPFO.

A hike in the wage limit as proposed would mean all employees drawing basic salary Rs 25,000 would have to compulsorily contribute to the provident fund. However, those drawing above that limit will have the option to become member of the provident fund, and can opt out if they want to.

The move comes in wake of changes in the wage structure in accordance with the proposal of the 7th Pay Commission. Trade union representatives at the CBT sub-committee meeting pointed out that the minimum wage of Central government employees after implementation of the Pay Commission report has been hiked to Rs 18,000. and hence the EPFO’s wage ceiling of Rs 15,000 needs to be altered. They pointed out that there could be further increase in minimum wages from the Rs 18,000 is likely with the trade unions demanding a minimum wage of at least Rs 21,000 to Rs 22000.

In fact, the Employees’ Deposit Linked Insurance Scheme (EDLI) is directly linked to the minimum wage ceiling. At present, If an employee is earning up to Rs 15,000 he or she can avail of benefits under the Employees Deposit Linked Insurance Scheme (EDLI). The scheme provides life insurance of up to Rs 6 lakhs.

Source: FE

Be the first to comment - What do you think?  Posted by admin - December 30, 2016 at 9:59 am

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Central Board of Trustees recommends 8.65% interest on EPF

Press Information Bureau
Government of India
Ministry of Labour & Employment

19-December-2016 16:54 IST

Shri Bandaru Dattatreya chaired the 215th meeting of the Central Board of Trustees (EPF)

CBT recommends 8.65% interest on EPF to its subscribers for the year 2016-17

The Minister of State for Labour and Employment (Independent Charge) Shri Bandaru Dattatreya chaired the 215th meeting of the Central Board of Trustees (EPF) in Bengaluru today.

Following are the key decisions of the Board.

1. The Board adopted the 63rd Annual Report on the work and activities of the EPFO for the year 2015-16 for placing it before the Parliament.

2. Paragraph 60(1) of Employees’ Provident Funds Scheme 1952, requires EPFO to credit to the account of each member interest at such rate as determined by the Central Government in consultation with the Central Board. The interest is credited to the members account on monthly running balances basis with effect from the last day in each year. Interest rates are dependent on return on investments done following the pattern of investment prescribed by the Central Government from time to time under Para 52 of the Scheme.

To recommend the rate of interest for the year 2016-17, the status of estimated amount to the credit of the members as on 01.04.2016, budget estimates (BE) of the Contributions and Withdrawals during 2016-17 and the estimated income from the investment holdings are taken into consideration. Interest income from Provident Fund investments for the year 2016-17 has been estimated mainly on the basis of interest income received/receivable in the financial year 2016-17 including surplus from previous year of Rs 410 crore. It may be noted that the last year income included a surplus from previous year of Rs 1604 crore.

Taking into account relevant factors, the Central Board decided to recommend 8.65% interest to its subscribers for the year 2016-17. Roughly 17 crore subscribers’ accounts will be updated with this interest rate upon acceptance by the Government.

3. Enrolment and Establishment coverage campaign 2017

This special campaign will be run in the following manner:

For effective monitoring and implementation the Zonal Addl. CPFCs shall lead the campaign. District Offices of EPFO will be activated and sufficient number of officers will be exclusively engaged. Meetings with the stakeholders namely Employer & Employee associations and State Governments will be held to make it a success. During the campaign wide publicity of PMRPY and PMPRPY benefits will also be undertaken. Online enrollment facilities to workers will form a key feature of the campaign.

Window will be provided from 01.01.2017 till 31.03.2017.

Following recommendation will be made for approval of the Government.

i. A nominal rate of levy of damages from the establishment for payment of contribution for the past period during the campaign for enrolment will be Rs one (Rs.1) per annum.

ii. Any employer during the campaign period, may send declaration for membership of the employees who were required or entitled to become members of the fund on or after the 1st day of April, 2009 but before the 1st day of January, 2017 who could not be enrolled for any reason.

iii. For the declaration made under this campaign, the employer shall be responsible to remit the contributions and interest payable in accordance with the provisions of the Act and the Schemes read with special provisions notified by the Central Government for enrolment campaign.

iv. No administrative charges will be leviable for the past period in respect of the employees enrolled during the campaign. The necessary amendments will be carried out under the relevant provisions of EPF & EDLI Scheme

v. The interest of workers enrolled under the campaign will be fully protected and they shall be eligible to get all eligible interest and benefits as laid down in the Schemes.

vi. To have uniform and nominal rate of levy of damages from the establishment for payment of contribution for the past period during the campaign for enrolment shall be fixed at Rs one (Rs.1) per annum. Enabling provision shall be inserted under para 32(a) of the EPF Scheme 1952 and under para (5) of Employees Pension Scheme, 1995 and para 8-A of EDLI Scheme, 1976.

This campaign will be suitably staffed and resourced so that employers who come forth to extend social security to their employees receive all possible assistance from EPFO. The action will meet the twin objectives of increasing the enrolment, extending social security benefits to all workers and reducing litigation.

4. The Board approved a set of guidelines for streamlining process of surrender of exemption granted to establishments. Surrender of exemption is a situation where an establishment requests to discontinue the exemption granted to it. As the Act and Scheme is silent regarding the procedure of surrender of exemption by an establishment, the decision assumes importance in helping ease of doing business.

5. The Supreme Court in SLP no.33032-33033 in the matter of R. C. Gupta & others has passed certain orders of credit of amounts in the EPF accounts to the previous accounts of employees in respect of wages more than the statutory wage limit. The orders are to the effect that if amounts exceeding statutory wage ceiling have been credited to EPFO, the classification thereon shall be at the joint option of employers and employees. In accordance, the Central Board approved a proposal for facilitating compliance. The 8.33% of the employer’s contribution proportionate to the salary of employees in excess of Rs.6500/- shall now be credited to the pension scheme along with the interest accrued in the provident fund account The employees however shall be required submit joint application along with their employer wherever the same has not been done. This will be applicable only in those case where the members/pensioners have contributed on higher wages than the statutory wage ceiling of Rs.6500/- with or without exercise of option prior to the issue of notification for increase of wage ceiling to Rs.15000/- effective from 01.09.2014.

6. The administration cost of the Employees’ Provident Fund (EPF) and Employees’ Deposit Linked Insurance Scheme (EDLI), 1976, is met from the administrative and inspection charges collected from the employers of un-exempted and exempted establishments. No charges however are levied to run Employees’ Pension Scheme (EPS), 1995.

The Central Government in consultation with the Central Board of Trustees, EPF fixes the administrative charges from time to time. The administrative charges were last reduced from 1.10% to 0.85% with effect from 1st January, 2015.Considering the need to promote the “Ease of Doing Business in India” and to make Indian business more competitive, and in response to the financial efficiency gained by EPFO, the Central Board decided to recommend further reduction of administrative charges to 0.65 %. It also recommended to abolish administrative charges levied in implementing the EDLI Scheme, 1976 passing on the benefits of efficiency and computerisation to employers. The Central Board also decided to constitute a sub-committee of CBT with members drawn from employees and employer representatives to make a pragmatic study of employment trends for next 10 years and recommend appropriate administrative charges to the Central Board.

7. The Chairman, CBT and the Minister of State for Labour and Employment (Independent charge) announced that Organisational Restructuring has been approved by the Union Government for implementation. This includes Cadre Restructuring which will ensure career progression of 20,000 staff/officers of EPFO. The Minister announced that this will be implemented as a New Year gift.

Be the first to comment - What do you think?  Posted by admin - December 20, 2016 at 7:04 pm

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