EPFO: Major Steps Taken in 2019

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EPFO
All types of online claims –provident fund, pension, partial withdrawal, and claims and transfer claims can be processed under this initiative.

Ministry of Labour and Employment has taken a number of initiatives for bringing transparency and accountability through reforms and enforcement of Labour Laws in 2019. Here are the major initiatives were taken in EPFO.

Three new apps to improve service delivery of subscribers were launched by Shri Santosh Kumar Gangwar, Minister of State (I/C) for Labour and Employment on EPFO Foundation Day. The details of three important digital initiatives of EPFO are as under:

1. Online Facility for UAN generation by worker

Now any workers can obtain Universal Account Number (UAN) directly on EPFO website which enrolls them for PF, Pension and Life Insurance benefits and a worker need not depend on his employer alone for UAN. This is in the direction of ease of living and ensuring universal social security.

2. EPS Pensioner’s PPO in DigiLocker website/Application (APP)

EPFO integrates with DigiLocker of NeGD to create depository of electronic PPOs which is accessible to individual pensioners. This is a move towards paperless system and ease of living for pensioners.

3. e-Inspections

Digital interface of EPFO with employers: The E-Inspection Form would be available in user login of employers not filing ECR which enables employer to inform either closure of business or unpaid dues with proposal for payment. It will nudge employers for compliant behavior and prevent undue harassment of non-willful defaulters and eliminate inspector raj.

Central Board of Trustees, EPF recommends crediting of 8.65% rate of interest on Accumulations in the EPF Member’s Account for the year 2018-19:

In 224th meeting of the Central Board of Trustees, EPF under the chairmanship of Union Minister of State for Labour and Employment (I/C) Shri Santosh Kumar Gangwar, the Central Board recommended crediting of 8.65 % rate of interest on the EPF accumulations in the EPF member’s account for the year 2018-19.

New Initiatives taken in Central Board of Trustees (CBT) meeting held on 21 August 2019:

1. Amendment in Employees’ pension Scheme 1995

In a major decision, the Central Board of Trustees (CBT) EPF in a meeting held at Hyderabad on 21 August 2019, approved the proposal to recommend for amendment in Employees’ Pension Scheme (EPS) 1995 for restoration of commuted value of pension to the Pensioners after 15 years of drawing commutation which will benefit approx. 6.3 lakhs pensioners. This was a long pending demand of the pensioner

2. Launch of Revamped EPFIGMS 2.0 Version

The Chairman CBT also launched the revamped EPFIGMS 2.0 version which will benefit more than 5 crores subscribers and lakhs of employers by speedy and smooth resolution of grievances.

Selection of ETF Manufacturers: The Board approved the decision to choose the Exchange Traded Fund (ETF) manufacturers through public bidding by 30/10/2019, extension of the term of the present ETF manufacturers (SBI MF and UTI MF) till then and also to authorized the Finance Investment & Audit Committee (FIAC) to conduct the exercise of choosing ETF manufacturers.

Allocation of investment in Nifty 50 and Sensex: The Board approved the proposal that the fund allocation between Nifty 50 and Sensex ETFs be divided evenly, i.e. in the ratio of 50% to 50%.

Appointment of a Consultant in addition to M/s. CRISIL Ltd: The Board approved the nomination of members from employer’s and employee side in a Committee constituted to select and appoint a separate Agency/Consultant in addition to M/s. CRISIL limited, inter-alia to review the working of the Portfolio Managers (PMs), assist the investment Committee in redemption of ETFs, etc.

Appointment of Portfolio Managers for managing funds of Central Board, EPF: The Central Board approved Request for Proposal (RFP) document for appointment of Portfolio Managers and recommendation of the FIAC on appointment of Portfolio Managers.

Exercise of early redemption options available in DHFL Bonds: The Board approved for early redemption option in DHFL bonds recommended by FIAC

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