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On Monday, the Employees’ Provident Fund Organization (EPFO) announced a significant change to how subscribers might withdraw their accumulations. The Employees’ Pension Scheme 1995 (EPS-95) accumulations can now be withdrawn by subscribers with less than six months of remaining service under a decision made by the EPFO.
The accumulations in an employee’s provident fund account can only currently be withdrawn by EPFO members who have less than six months of service remaining. ()
At its 232nd meeting on Monday, the Central Board of Trustees (CBT), the highest decision-making body of the EPFO and chaired by Union Labor Minister Bhupender Yadav, recommended to the government to make changes in the ongoing EPS-95 plan. ()
The board has advised the government regarding the extension of EPS withdrawal benefits to members going to retire in six months.
The board has also suggested that participants who have participated in the plan for more than 34 years be granted proportionate pensionary benefits. As a result, when the retirement benefit is fixed, retirees will receive greater pensions.
According to the statement, the board recommended making it feasible to determine equitable transfer value whenever an exemption from EPS-95 is granted or cancelled. Its exchange-traded fund (ETF) unit investments also have a redemption policy that has been approved.
The board also gave its approval for the redemption of ETF units bought in 2018 so that capital gains could be recorded and used to calculate the interest rate for 2022–2023 using earnings. The CBT approved the 69th annual report on the operation of the EPFO for 2021–2022 among other things, and it will be presented to Parliament.
Along with the audit report for presenting to Parliament, the authorised documents included the audited annual accounts for the 2020–21 fiscal years for the Employees’ Deposit Linked Insurance (EDLI) Scheme 1976, EPS Scheme 1995, and EPF Scheme 1952.
