Many historic and member-centric decisions were taken in the 236th Central Board Meeting (CBT) of EPFO (Employees’ Provident Fund Organization). This meeting was chaired by Dr. Mansukh Mandaviya, Minister of Labor and Employment, Government of India. In this article, we will discuss the major decisions, which will help in making the functioning of EPFO even more smooth and transparent.
CBT Meeting: Milestone for EPFO
Important decisions taken in CBT
Important decisions were taken in the EPFO meeting for both employees and employers. Some of these decisions were to improve financial benefits, transparency, and functioning. Let’s know about those decisions, which will affect EPFO users across the country.
Member Benefits: New Investment Policy and Reforms
Big Change for Members: Reforms in Interest Calculation
Till now, if a member’s claim in EPFO was settled by the 24th, then interest was given only till the first day of the same month. Now this policy has been changed. Now interest will be given till the date the claim is settled. This will give the members the full benefit of interest and reduce complaints.
Successful Testing of Centralized Pension Payment System (CPPS)
The Central Pension Payment System (CPPS) has been tested by EPFO to simplify the pension distribution system. The goal of this system is to provide uniform and fast service to 78 lakh pensioners. Under this project, pensioners will get the facility to get their pension from any bank.
Employer Benefits: Easier Processes and New Offers
Change in Bank Selection for Centralised EPF Contribution Collection
CBT has implemented new rules to simplify EPFO contribution collection. Now, all banks listed with RBI can participate in EPFO contribution collection. This will give employers more bank options, and also make it easier to work with EPFO.
EPFO Amnesty Scheme 2024: What is it?
CBT has sent a proposal for EPFO Amnesty Scheme 2024 to the Central Government. The scheme aims to give employers a chance to resolve old non-compliance issues without penalty. The scheme will be especially beneficial for small entities in the MSME sector, which may be afraid to register under EPFO.
What type of investment will EPFO make?
Changes in EPFO’s investment: New policy for investment in PSE and REITs
CBT has approved a new investment policy for EPFO, under which investments will be made in Infrastructure Investment Trusts (InvITs) and Real Estate Investment Trusts (REITs) issued by public sector undertakings. This move will increase the investment strength of EPFO and provide better benefits to the members.
ETF Investment: EPFO’s New Approach
EPFO has approved the policy of investment in exchange-traded funds (ETFs) like CPSE and Bharat 22. Its aim is to get better income for the interest account of the EPF scheme.
Reforms in EPFO: New appointment policy for employees
Changes in property appointment policy
A new appointment policy has been implemented for some employees in EPFO. Under this, now the rules for compassionate appointments for the dependents of the employees have been eased. This will provide relief to the families whose employees died while working.
Extension of Modified Assured Career Progression (MACP) Scheme
CBT has approved the Modified Assured Career Progression (MACP) Scheme for Social Security Assistants (SSAs). The scheme aims to provide better career opportunities to SSAs.
Future Direction of EPFO: IT Modernization and Reforms
CITES 2.01 Project: EPFO’s Tech Revolution
EPFO has taken major steps to improve its technological capabilities under the CITES 2.01 project. With new software and hardware, now there will be more transparency and speed in all the operations of EPFO. Along with this, one member, one account system will also be implemented, which will ease claim settlement.
Summary: Widespread Impact of EPFO Reforms
The decisions taken in the Central Board meeting of EPFO will definitely benefit both employees and employers. This reform will make EPFO a transparent, easy and better service provider. Along with financial and technological improvements, new schemes and benefits will be expanded for employees and employers.
FAQs:
1. What are the new rules for interest payment in EPFO?
- Now interest will be available till the date the claim is settled, so that the member will get the benefit of full interest.
2. How will pensioners benefit from the CPPS scheme?
- The pension distribution system will be simplified under CPPS, allowing pensioners to receive their pension from any bank.
3. What is EPFO Amnesty Scheme 2024?
- This scheme gives employers a chance to rectify the non-compliance situation, without any penalty.
4. What changes have been made in EPFO investments?
- EPFO will now invest in PSEs and REITs, which will give better returns.
5. What changes have been made in the new appointment policy of EPFO for employees?
- Now the rules for compassionate appointments for the dependents of employees have been simplified and eased.