EPFO Update: Now employees won’t have to transfer PF; here’s why

New Delhi: The EPFO, or Employees Provident Fund Organisation, just lately gave the go-ahead for the creation of centralised IT-enabled programs. Employees will not should switch cash from their provident funds once they transfer jobs on account of this.

Even if an individual modifications positions after the relocation to the Centre for Development of Advanced Computing, or C-DAC, to create the programs, their provident fund quantity will stay the identical. They will not be supposed to fret about transferring the accounts on account of this. The Central Board of Trustees (CBT), EPFO’s final decision-making authority, made this choice at its 229th assembly.

Union labour minister of state Bhupender Yadav presided over the assembly, which came about on November 20. “After then, the field functionalities will be integrated into a central database, allowing for smoother operations and improved service delivery.” The centralised system will make it simpler to deduplicate and consolidate all of a member’s PF accounts. It will get rid of the requirement for a switch of account when an individual modifications jobs, in keeping with a authorities assertion.

The retirement fund organisation has additionally determined to present its advisory physique, the Finance Investment and Audit Committee (FIAC), extra flexibility in deciding whether or not or to not take part in new asset lessons.

“At the moment, we’ve opted to invest primarily in government securities that have just been added to the market” (bonds and InvITs). There isn’t any such factor as a share for it. After the assembly, Yadav was cited as saying, “FIAC will decide on a case-by-case basis.”

According to a press launch, the Board voted to permit the Finance Investment & Audit Committee (FIAC) to determine on funding selections on a case-by-case foundation for all such asset lessons which can be included within the Pattern of Investment as notified by the Government of India.

“If we want to offer a high rate of interest, we must obey the finance ministry’s criteria.” We have been unable to put money into some devices (required by rules) because of a wide range of elements. After the assembly, Union labour secretary Sunil Barthwal was cited as saying, “Now we would be in a position to invest in those instruments.”

The National Highways Authority of India (NHAI) and the Power Grid Corporation of India (PGCIL) have each launched public sector infrastructure funding trusts for the time being (InvITs). The EPFO can also be excited by public-sector bonds.

The authorities has up to date the Pattern of Investment for pension funds to incorporate new merchandise reminiscent of InvITs. “It has been decided in principle that the FIAC would make a decision in this regard on a case-by-case basis.” The FIAC has been given permission by the CBT to take action. “As with NHAI and Power Grid (InvITs), the FIAC will make a decision,” he acknowledged.

In the Pattern of Investment for pension funds, the federal government has included new devices reminiscent of InvITs. “In principle, the FIAC will make a decision on this matter on a case-by-case basis.” The FIAC has been given permission by the CBT to behave on this method. “Like NHAI and Power Grid (InvITs), the FIAC will make a decision,” he mentioned.

In a associated incident, the EPFO introduced on Saturday that it added 15.41 lakh subscribers in September 2021, indicating a seamless pattern in web payroll will increase following the Covid-19 pandemic’s second wave.

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