EPFO members alert! Retirement fund body relaxes withdrawal norms | Check details, EPFO interest credit for 2021-22 news

EPFO members alert! Check details, EPFO interest credit for 2021-22 news: The Employees' Provident Fund Organisation (EPFO) on Monday announced a major decision regarding the withdrawal of accumulations for its subscribers. 

What's the update? 

Retirement fund body EPFO decided to allow withdrawal of accumulations in Employees' Pension Scheme 1995 (EPS-95) for those subscribers who have only less than six months of service left. 

What's the current procedure regarding withdrawal? 

Currently, EPFO subscribers who have less than six months of service left are allowed to withdraw the accumulations in their employees' provident fund account only.

The EPFO's apex decision making-body Central Board of Trustees (CBT), headed by Union Labour Minister Bhupender Yadav, at its 232nd meeting held on Monday recommended to the government to make certain amendments in the EPS-95 scheme. The board has recommended to the government to extend withdrawal benefits from EPS account to members who have less than six months of service, it added. 

Proportionate pensionary benefits for members 

The board has also recommended extending proportionate pensionary benefits for members who have been in the scheme for more than 34 years. This will help pensioners in getting higher pension at the time of fixation of the retirement benefit.

According to the statement, the board has recommended enabling equitable transfer value calculation in cases of grant of exemption or on cancellation of exemption from EPS-95. A redemption policy for its investments in Exchange traded fund (ETF) units has also been approved.

The board also approved redemption of ETF units purchased during the period calendar year 2018 for booking capital gains to be included in the earnings for calculation of rate of interest for the 2022-23.
Among others, the CBT cleared the 69th annual report on the functioning of the EPFO for 2021-22 which will be tabled in Parliament.

The Audited Annual Account, in respect of the EPF Scheme 1952, EPS Scheme 1995 and Employees' Deposit Linked Insurance (EDLI) Scheme 1976 for the year 2020-21 along with the Audit Report for placing in Parliament were also approved.

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The CBT also gave its nod for the Information Security Policy of the EPFO as well as for a generic policy for purchase of IT hardware for storage and purchase of server database and database licenses.
The board approved 11 proposals for surrender/cancellation of exemption from EPF Scheme.

A document EPFO Vision @2047, which is a culmination of intense deliberations at the Chintan Shivir, has also been prepared. As per the statement, the board discussed the key strategies and initiatives mentioned in the document which would help the EPFO match global benchmarks in providing world-class social security and social protection to all segments of society. These issues relate to ways and means to enhancing coverage to 10 crore in the next five years and bringing ease of compliance by moving from enforcement to facilitation to expand services, among others.

EPFO interest credit for 2021-22 news

The Employees' Provident Fund Organisation (EPFO) has begun the process of crediting interest for 2021-22 from Monday (October 31). The credited interest will soon reflect in the UAN/EPFO accounts of beneficiaries. In an online query, the EPFO replied to one of its subscribers that "The process of crediting interest is ongoing and it will get reflected into your account soon." "Whenever the interest is credited, it will be paid in full. There will be no loss of interest," it added. 

The process of crediting interest is ongoing and it will get reflected into your account soon. Whenever the interest is credited, it will be paid in full. There will be no loss of interest.

— EPFO (@socialepfo) October 31, 2022

EPFO interest credit for 2021-22 - Reason for delay 

The delay in crediting interest for the last fiscal is due to software upgrade being conducted by the retirement fund body, EPFO. 

EPFO interest credit for 2021-22 - Interest Rate 

The government has approved an 8.1 per cent interest on EPF deposits for the 2021-22 fiscal ended March 31 to over 5 crore subscribers.

(PTI Inputs) 

Also Read | EPFO interest credit for 2021-22 news: Retirement fund body begins crediting interest | Check EPFO calculator, interest rate, process, reason for delay