Pension fund body EPFO voted on Monday to allow the deduction of accruals in the Employees’ Retirement Plan 1995 (EPS-95) for subscribers with less than six months of service remaining.
Currently, members of the workers’ provident fund (EPFO) with less than six months seniority in the company only have the right to withdraw the balances of their workers’ provident fund account.
At its 232nd meeting on Monday, the Central Board of Directors (CBT), EPFO’s highest decision-making body, headed by Union Labor Minister Bhupender Yadav, recommended the government make certain changes to the EPS plan. 95, according to a press release issued. by the Labor Office.
The council recommended that the government extend EPS account withdrawal benefits to members who have been in service for less than six months, he added.
Additionally, the Board recommended extending prorated retirement benefits to members who have been in the plan for more than 34 years.
This will help pensioners get a higher pension when determining their retirement benefits.
According to the release, the Board recommended allowing a fair calculation of transfer value in the event an EPS-95 waiver is granted or revoked.
It has also approved a repurchase policy for its investments in shares of exchange-traded funds (ETFs).
The Board also approved the redemption of ETF Shares purchased during the 2018 calendar year to recognize capital gains for inclusion in income for the 2022-23 interest rate calculation.
Among other things, the CBT approved the 69th annual report on the activities of the EPFO for 2021-22, which will be presented to Parliament.
The audited financial statements of the EPF Scheme 1952, the EPS Scheme 1995, and the Employees Deposit Insurance Scheme 1976 (EDLI) for the year 2020-21 have also been approved along with the audit report to be submitted to Parliament.
The CBT has also endorsed EPFO’s information security policy, as well as a general policy on the purchase of storage hardware and the purchase of server databases and software licenses.
The Board approved 11 proposals for the adoption/withdrawal of the EPF program.
An EPFO Vision @2047 document has also been prepared, which is the culmination of intense deliberations at Chintan Shivir.
According to the statement, the Board discussed the key strategies and initiatives mentioned in the document that would help EPFO to achieve global benchmarks by providing world-class social security and social protection to all segments of society.
These questions relate to ways and means to increase coverage to Rs 10 crore in the next five years and facilitate compliance, including moving from enforcement to facilitation to expand services.