The Employees’ Provident Fund Organisation (EPFO) is looking to rank exempted trusts to make the public aware about their performance.
Exempted establishments, regulated by the EPFO, can create their own provident fund trusts and administer them based on specified rules.
“We are monitoring the performance of the exempted trusts and now we are going to rank them. These companies are supposed to credit the trust with the amount every month before the 15th. They have to invest according to the set guidelines and earn the return. They have to properly file return with us every month and honour claims on time. We will evaluate the performance of the establishments on all these parameters, rank them and put it on our website,” said Central Provident Fund Commissioner V P Joy.
The government had permitted employers, mainly big entities, to establish and manage their own private PF schemes, subject to certain conditions prescribed under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952.
Private EPF trusts are required to seek approval under the Income Tax Act, 1961 for employees to get tax benefits. There are around 3,000 private PF trusts, with an estimated corpus of Rs 1 lakh crore and a membership of five million employees.
Among the private firms that have their own PF trusts are Tata Consultancy Services and Accenture.
Exempted establishments, regulated by the EPFO, can create their own provident fund trusts
They can administer them based on specified rules
There are around 3,000 private PF trusts
These have an estimated corpus of Rs 1 lakh crore
- 5 million employees are members of these trusts