EPFO's Bold Steps: New Investment Guidelines and Amnesty Scheme Approved

The EPFO's Central Board of Trustees has approved investment guidelines for PSU-sponsored trusts and an Amnesty Scheme to encourage compliance. This move promises member benefits, boosts operational efficiency, and aligns with the government's employment generation strategies.

In a crucial step toward enhancing financial and operational efficiency, the Central Board of Trustees (CBT) of the Employees' Provident Fund Organisation (EPFO) has given the green light to investment guidelines for Public Sector Undertaking (PSU) sponsored Infrastructure Investment Trusts (InvITs) and Real Estate Investment Trusts (REITs). This decision, announced by the Ministry of Labour and Employment, follows a comprehensive discussion at the 236th meeting of CBT, chaired by Union Labour Minister Dr. Mansukh Mandaviya in New Delhi.

A key component of this reform package is the CBT's endorsement of a Redemption Policy for Exchange Traded Fund (ETF) investments in CPSE and Bharat 22, aiming to bolster the EPF Scheme's 'Interest Account.' The policy stipulates a minimum five-year holding period, ensuring returns exceed government securities and surpass the CPSE and Bharat 22 indices. Furthermore, a pivotal amendment to paragraph 60(2)(b) of the EPF Scheme, 1952, now guarantees that interest is paid up until the claim settlement date, offering financial advantages to members and minimizing grievances.

The CBT has also introduced the EPFO Amnesty Scheme 2024, advocating it to the Central Government. Designed to motivate employers toward voluntary compliance, this scheme allows for a simple online declaration, promoting social security benefits and rebuilding trust. It ties in with the Employment Linked Incentive Scheme from the Union Budget 2024-25 to boost employment and formalize the workforce. Additionally, the CBT has endorsed the Modified Assured Career Progression (MACP) Scheme for Social Security Assistants (SSAs), acknowledging the need for career advancement and strengthening administrative efficiency, thereby benefiting over 2350 SSAs within the EPFO.

(With inputs from agencies.)