EPFO Latest Update: There is a lot of difficulty in dealing with many tasks related to Employees Provident Fund Organization (EPFO). People have to make rounds of offices and officials to get their own money.
Now EPFO is preparing a central system which will ease some difficulties. However, the EPFO will approve it after considering the proposal for setting up a central pension distribution system in its meeting to be held on July 29 and 30. With the establishment of this system, pension will be transferred in one go to the accounts of 73 lakh pensioners across the country.
At present, 138 regional offices of EPFO transfer pension to the accounts of the beneficiaries of their area. In such a situation, pensioners get pension on different days and times. A source told PTI-language that the formation of a central pension distribution system will be proposed in the meeting of the Central Board of Trustees (CBT), the apex decision-making body of EPFO, to be held on July 29 and 30.
The source said that after the installation of this system, the distribution of pension will be done on the basis of the database of 138 regional offices. With this, 73 lakh pensioners will be given pension simultaneously. The source said that all the regional offices deal with the needs of the pensioners of their area differently. With this, pensioners are able to pay pension on different days.
In the 229th meeting of the CBT held on November 20, 2021, the trustees had approved the proposal for development of a centralized IT based system by C-DAC.
The Labor Ministry had said in a statement after the meeting that after this the details of regional offices would be transferred to the central database in a phased manner. This will facilitate the operation and supply of services.
What is Employees Provident Fund
Employees’ Provident Fund, commonly known as PF (Provincial Fund). It is a retirement or post-retirement benefit plan. This facility is available to all salaried employees. Under this scheme, the employee as well as the employer (company or institution) contributes a certain amount from their basic salary (approximately 12%) to the EPF account. The entire 12% of your basic salary is invested in an Employees’ Provident Fund.
Out of 12% of basic salary, 3.67% is invested in Employees Provident Fund or EPF and the rest. 8.33% is converted into your EPS or employee’s pension plan. Therefore, Employees’ Provident Fund is one of the best ways of saving which enables the employees to save a part of their salary every month and use it after retirement. Nowadays, one can check PF that how much money got deposited in his/her PF account.