112th EPFO Executive Committee Meeting Highlights Key Reforms and Digital Transformation Initiatives

The EC formally adopted the Unified Pension Scheme (UPS) for EPFO officers and staff, aligning with a recent gazette notification by the Ministry of Finance.

The 112th meeting of the Executive Committee (EC) of the Central Board of Trustees, Employees' Provident Fund (EPF), was held at the EPFO Head Office in New Delhi. The meeting was chaired by Ms. Sumita Dawra, Secretary, Ministry of Labour and Employment, and attended by Shri Ramesh Krishnamurthi, Central Provident Fund Commissioner (CPFC), along with senior officials from the Ministry of Labour and Employment and representatives of employers and employees.

Key Decisions and Updates

Adoption of the Unified Pension Scheme (UPS) for EPFO Officers and Staff

The EC formally adopted the Unified Pension Scheme (UPS) for EPFO officers and staff, aligning with a recent gazette notification by the Ministry of Finance. Effective from April 1, 2025, the UPS provides a structured and assured pension framework for EPFO employees under the National Pension System (NPS). Key benefits of the scheme include:

• Minimum guaranteed pension
• Family pension provisions
• Dearness relief adjustments
• Option for EPFO employees to transition from NPS to UPS

This marks a significant milestone in ensuring financial security for EPFO employees post-retirement.

Implementation of the Centralized Pension Payment System (CPPS)

The EC reviewed updates on the implementation of the Centralized Pension Payment System (CPPS), which was introduced across all EPFO regional offices in January 2025 via NPCI (NACH) payments. CPPS has successfully improved pension disbursement by enabling pensioners to access their pensions from any bank branch nationwide. Notable achievements include:

• 69.4 lakh pensioners received pensions through CPPS in January 2025
• 99.9% success rate in disbursements
• Shift from a decentralized model to a more efficient centralized approach

The EC emphasized the need to transition to the Aadhaar-Based Payment System (ABPS) in a time-bound manner to ensure secure and seamless pension disbursement directly into Aadhaar-linked bank accounts.

Advancements in the Centralized IT-Enabled System (CITES 2.01) and EPFO 3.0

The EC reviewed the progress of CITES 2.01, a major initiative transitioning EPFO’s database from a decentralized system to a centralized platform. The modernization effort, scheduled for completion by March 31, 2025, aims to:

• Streamline claim settlements and payments
• Replace the aging Field Office Application Software
• Enhance overall service delivery and efficiency

Additionally, the EPFO briefed the EC on its EPFO 3.0 initiative, which seeks to transform EPFO into a future-ready, member-centric, and technology-driven organization. This involves adopting cutting-edge technologies, re-engineering processes, and expanding social security coverage. The EC directed EPFO to prepare a Vision Document for EPFO 3.0 by March 31, 2025.

Progress on Pension on Higher Wages (PoHW)

The EC received an update on the processing of applications under Pension on Higher Wages (PoHW) in accordance with the Supreme Court’s judgment dated November 4, 2022. EPFO reported that:

• 70% of applications have been processed
• Efforts are underway to complete all applications by March 31, 2025
• Special focus is being given to expedite cases where members have already deposited the required amount, particularly those from large Public Sector Undertakings (PSUs)

The EC instructed EPFO to ensure swift processing and resolution of pending cases.

Rationalization of Validations and Simplification of Partial Withdrawals

EPFO is actively working on simplifying claim processing and rationalizing validations for partial withdrawals. A technical committee has recommended:

• Simplified validations in Form 31 for advance withdrawals
• Reduction in unnecessary validations to enhance ease of access for members

The EC decided to implement these measures in parallel with ongoing IT reforms to improve user experience and accessibility for EPFO members.

Commitment to Digital Transformation and Member-Centric Reforms

EPFO reaffirmed its dedication to digital transformation, with a strong focus on:

• Faster claim settlements
• Seamless pension disbursements
• Enhanced service delivery for members

The EC decided to reconvene within a month to review the progress of these key initiatives and ensure the timely execution of reforms.