New Delhi: Dr. Mansukh Mandaviya, Union Minister for Labour and Employment, chaired the 236th Central Board of Trustees (CBT) meeting of the Employees’ Provident Fund Organisation (EPFO), where significant advancements were announced to improve efficiency, transparency, and member services.
One of the highlights was the upcoming rollout of the Centralized Pension Payment System (CPPS), set for January 1, 2025. This system aims to benefit over 78 lakh pensioners by enabling seamless pension disbursements across any bank branch nationwide, eliminating the need for bank verifications or physical visits. After successful pilot projects in October and November 2024, CPPS will modernize pension management under EPFO’s IT-enabled system, CITES 2.01.
Member-Centric Reforms
In a major decision, CBT approved paying interest up to the date of claim settlement, replacing the earlier practice of ending interest calculations a month prior. This move is expected to expedite claim processing and reduce grievances. Additionally, the enhancement of auto-claim settlement limits from ₹50,000 to ₹1 lakh for housing, marriage, and education loans will benefit members significantly.
The Board also ratified extending EDLI benefits, ensuring members receive between ₹2.5 lakh and ₹7 lakh in case of emergencies. A record 3.83 crore claims worth ₹1.57 lakh crore were settled in FY 2024-25, reflecting EPFO’s improved service delivery.
Employer-Friendly Initiatives
CBT recommended the EPFO Amnesty Scheme 2024, designed to encourage employers to voluntarily rectify compliance issues without penalties. This initiative aligns with the Employment Linked Incentive (ELI) Scheme from the Union Budget 2024-25, which aims to create over 2 crore formal jobs in two years. Simplified empanelment criteria for banks handling EPF collections were also approved to enhance ease of business.
Investment Strategies for Better Returns
CBT outlined a prudent investment framework, including guidelines for Public Sector Undertaking (PSU)-sponsored InvITs/REITs, to secure higher returns for EPF members. The redemption policy for ETF investments will generate additional income for the EPF’s interest account.
A Forward-Looking Approach
These measures underscore EPFO’s commitment to digital transformation, member welfare, and employer engagement, steering India toward a more inclusive and efficient social security system.
— PIB, NEW DELHI
Web Team, C6N
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