EPFO Updates: The Employees’ Provident Fund Organisation announced that it will approve a proposal for setting up a central pension disbursal system in its meeting on July 29 and 30. This decision will open new doors for crediting the benefits into over 73 lakh pensioners’ bank accounts in one go across India.
According to reports, “a proposal for setting up a central pension disbursal system will be placed in the EPFO’s apex decision-making body Central Board of Trustees (CBT) in a meeting scheduled on July 29 and 30.”
Currently, over 138 offices of the retirement fund body distribute pensions to people in their regions separately and this has led to pensioners of different regional offices receiving their pensions at different times or days.
The EPFO is a social security organisation that provides a number of benefits to the members covered under the statute of EPF & MP Act, 1952. The body provides provident fund, pension benefits to the members on their retirement, and family pension and insurance benefits to their families in case of the untimely death of the member.
Notably, the 229th meeting of the Central Board of Trustees, held on November 20 of last year, included the approval of the proposal for the development of centralized IT-enabled systems by C-DAC.
In a statement following the meeting, the labour ministry had said that the centralized system will facilitate de-duplication and merger of all PF accounts of any member. This will remove the requirement of transfer of account on change of job.
According to the report, “the CBT will consider and approve a proposal to allow withdrawal of deposits from pension accounts by subscribers who have contributed for less than six months. Presently, only those subscribers are eligible for withdrawal from their pension accounts who have contributed for six months to 10 years.”
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