EPFO relaxes withdrawal of accumulations norms for EPS-95 subscribers

Retirement fund body EPFO on Monday decided to allow withdrawal of accumulations in Employees' Pension Scheme 1995 (EPS-95) for those subscribers who have only less than six months of service left.

Currently, the Employees' Provident Fund Organisation (EPFO) subscribers who have less than six months of service left are allowed to withdraw the accumulations in their employees' provident fund account only.

The EPFO's apex decision making-body Central Board of Trustees (CBT), headed by Union Labour Minister Bhupender Yadav, at its 232nd meeting held on Monday recommended to the government to make certain amendments in the EPS-95 scheme, a labour ministry statement said.

The board has recommended to the government to extend withdrawal benefits from EPS account to members who have less than six months of service, it added.

Further, the board has recommended extending proportionate pensionary benefits for members who have been in the scheme for more than 34 years.

This will help pensioners in getting higher pension at the time of fixation of the retirement benefit.

According to the statement, the board has recommended enabling equitable transfer value calculation in cases of grant of exemption or on cancellation of exemption from EPS-95.

A redemption policy for its investments in Exchange traded fund (ETF) units has also been approved.

The board also approved redemption of ETF units purchased during the period calendar year 2018 for booking capital gains to be included in the earnings for calculation of rate of interest for the 2022-23.

Among others, the CBT cleared the 69th annual report on the functioning of the EPFO for 2021-22 which will be tabled in Parliament.

The Audited Annual Account, in respect of the EPF Scheme 1952, EPS Scheme 1995 and Employees' Deposit Linked Insurance (EDLI) Scheme 1976 for the year 2020-21 along with the Audit Report for placing in Parliament were also approved.

The CBT also gave its nod for the Information Security Policy of the EPFO as well as for a generic policy for purchase of IT hardware for storage and purchase of server database and database licenses.

The board approved 11 proposals for surrender/cancellation of exemption from EPF Scheme.

A document EPFO Vision @2047, which is a culmination of intense deliberations at the Chintan Shivir, has also been prepared.

As per the statement, the board discussed the key strategies and initiatives mentioned in the document which would help the EPFO match global benchmarks in providing world-class social security and social protection to all segments of society.

These issues relate to ways and means to enhancing coverage to 10 crore in the next five years and bringing ease of compliance by moving from enforcement to facilitation to expand services, among others.