EPFO or Employees’ Provident Fund Organization has around six crore members and handles a corpus of Rs. 10 lakh crore. The retirements fund body obtains over 1 crore promises annually including those regarding EPF withdrawal, pension fixation and insurance. The EPFO has been taking many steps for easing the procedure of claims pay out. While an employee’s 12 % contribution will go toward EPF kitty, 8.33 % from the total 12 % of the employer’s contribution is committed to EPS or pension system. The total amount 3.67 % is committed to EPF.
Here are six latest developments EPFO subscribers should know:
1) Now, EPF claim above Rs. 10 lakh need not be registered online. The EPFO has modified its guidelines related to provident finance claims. In the circular dated Apr 13, EPFO said offline cases may also be accepted in every cases. EPFO clients have the choice of processing online as well as manual promises for provident finance withdrawals.
2) Before, in a Apr 13 round, EPFO got said that “in the event the quantity of claim negotiation is above Rs. 10 lacs for PF promises and Rs. 5 lacs according of EPS withdrawal claims, the say form must be accepted through online setting only.” EPFO in the Apr 13 round said that “taking into consideration the grievances lifted by people, this stipulation will be held in abeyance so that offline promises may also be accepted in every cases.”
3) EPFO members may soon get a choice to increase or reduce investments out of the provident account into stocks and options through exchange trade money (ETF). The EPFO has been buying stock marketplaces through ETFs since August 2015. Exchange-traded cash (ETFs) are money that trail indexes such as Sensex and Nifty. In 2015-16, EPFO spent 5 % of its investible debris which was eventually risen to 10 % 2016-17 and 15 % in 2017-18.
4) In a recently available appointment of Employees’ Provident Account Organisation’s apex decision making body Central Table of Trustees (CBT), it was made a decision to explore the likelihood of giving a choice of improving collateral allocation beyond mandated collateral investment limit (currently 15 %) as well as the option of minimizing collateral allocation below the limit to the readers.
5) EPF or Worker Provident Fund design could have two split member account minds: Fixed Income – where set gross annual interest gets acknowledged to members bank account – and Collateral (ETF) – where investment in collateral is mirrored as products and the come back is marked to advertise.
6) This accounting coverage of investment in trade Traded Money was lately approved by Central Panel of Trustees or CBT, the apex decision body of EPFO or Employees’ Provident Account Organisation. (With Company Inputs)
To check the Steps for EPF online claim check here.