New Delhi: Dr. Mansukh Mandaviya, Union Minister for Labour & Employment and Youth Affairs & Sports, presided over the 236th meeting of the Central Board of Trustees (CBT), Employees’ Provident Fund (EPF), held in New Delhi today. The meeting saw several landmark decisions and updates aimed at improving member benefits, fostering employer compliance, and ensuring robust fund management.
Joining the Union Minister were Sushri Shobha Karandlaje, Minister of State for Labour & Employment, Sumita Dawra, Secretary (Labour & Employment), and Ramesh Krishnamurthi, Central Provident Fund Commissioner.
Major Initiatives and Member Benefits
- Auto Claim Settlement Extended: The auto claims settlement limit was raised from ₹50,000 to ₹1 lakh, covering advances for housing, marriage, and education. This financial year, 1.15 crore claims have been settled via the auto mode, with a reduced rejection ratio of 14% in November 2024.
- Interest Payment Reform: A significant amendment to paragraph 60(2)(b) of the EPF Scheme ensures interest is paid up to the date of claim settlement rather than the preceding month. This change will reduce pendency and improve financial outcomes for members.
- Pension System Modernization: The Centralized Pension Payment System (CPPS) pilot projects in Karnal, Jammu, and Srinagar have successfully disbursed ₹195 crore to 8.3 lakh pensioners. CPPS will be fully operational by January 1, 2025, benefiting over 78 lakh pensioners.
- Enhanced EDLI Benefits: The Board approved an extension of the Employees’ Deposit Linked Insurance (EDLI) Scheme, ensuring benefits between ₹2.5 lakh and ₹7 lakh.
Employer-Centric Reforms
- Simplified Bank Empanelment: Criteria for empaneling banks for EPF contributions were relaxed to include all RBI agency banks and Scheduled Commercial Banks with a collection threshold of 0.2%. This change facilitates easier transactions and faster fund transfer.
- Amnesty Scheme 2024: A new voluntary compliance scheme encourages employers to rectify past non-compliance without penalties, supporting the Employment Linked Incentive (ELI) Scheme announced in the Union Budget 2024-25.
Investment and Financial Management
- Redemption Policy for ETFs: The Board approved a policy for redeeming investments in CPSE and Bharat 22 ETFs, ensuring better returns for members.
- Infrastructure Investments: Guidelines were approved for investing in PSU-sponsored Infrastructure Investment Trusts (InvITs) and Real Estate Investment Trusts (REITs), aligning with regulatory standards and enhancing returns.
HR and Organizational Enhancements
- Compassionate Appointment Policy: Eligibility criteria for compassionate appointments were relaxed, providing relief to the families of deceased EPFO employees.
- Career Progression for SSAs: The approval of the Modified Assured Career Progression (MACP) Scheme benefits over 2,350 Social Security Assistants, ensuring timely career advancement.
The Board also confirmed the minutes of the 235th CBT meeting and sub-committee discussions on finance, pensions, and exempted establishments.
Dr. Mandaviya highlighted the reforms as pivotal steps toward an efficient, transparent, and member-centric EPFO. With these measures, EPFO reinforces its commitment to improving service delivery, enhancing member benefits, and contributing to employment generation and economic formalization.
