EPFO's Major Overhaul: New Initiatives and Reforms Announced

Union Minister Mansukh Mandaviya led the Central Board of Trustees meeting, unveiling several reforms including auto claim settlements, interest payments on EPF claims, and a pilot pension system. Key decisions included simplifying bank criteria and introducing an EPFO Amnesty Scheme, alongside new investment policies aimed at boosting financial efficiency.

Union Minister for Labour & Employment and Youth Affairs & Sports, Mansukh Mandaviya presided over the 236th meeting of the Central Board of Trustees (CBT) of the Employees' Provident Fund Organization (EPFO) in New Delhi on Saturday. The meeting saw attendance from notable figures including Vice-chairperson Shobha Karandlaje and Secretary Sumita Dawra, who discussed groundbreaking initiatives aimed at streamlining EPFO operations and enhancing member benefits.

The board was informed that the EPFO extended its auto claims settlement facility limit to Rs. 1 lakh, bridging the gap for advances in housing, marriage, and education sectors. Over 1.15 crore claims have already been settled this fiscal year. The rejection ratio of claims has notably decreased to 14% as of November 2024, reflecting better management and efficiency.

Centralized Pension Payment System's (CPPS) pilot phase was successfully completed, marking a shift towards a seamless nationwide pension disbursement. Under the upgrade project CITES 2.01, the system's hardware and software are being revamped to expedite claims and unify member accounts, facilitating one member-one account system.

The CBT members ratified a key reform allowing interest payments on EPF claims to extend up to the date of settlement, a move poised to enhance member satisfaction by eliminating interest loss. Additionally, the benevolent EPFO Amnesty Scheme 2024, encouraging employers to rectify past compliance without legal penalties, was introduced.

CBT reviewed their investment strategies, approving policies for ETF investments and embracing Public Sector Undertakings' InvITs/REITs. Further, the EPFO's 71st Annual Report was ratified, and the board also gave the nod for a Revised Policy on Compassionate Appointment and MACP Scheme for Social Security Assistants, emphasizing fair career progression for employees.

(With inputs from agencies.)