EPS amendment APPROVED! Good news for 6 lakh pensioners! CBT okays these changes in Employees Pension Scheme

Employees Pension Scheme (EPS) Amendment 2019: Here's good news for lakhs of pensioners under Employee Pension Scheme! In a major decision, the Central Board of Trustees (CBT) EPF has approved the proposal to amend Employees' Pension Scheme (EPS) 1995 for the restoration of commuted value of pension to the pensioners after 15 years of drawing commutation. The decision, which was taken in a meeting held at Hyderabad on 21 August 2019, will benefit around 6.3 lakhs pensioners. This was a long pending demand of the pensioners.

The Minister of State (I/C) for Labour and Employment Santosh Kumar Gangwar, who is also Chairman CBT, said at the meeting that Employees' Provident Fund Organisation (EPFO) is settling over 91 percent claims of EPF members in online mode and lauded the efforts made to improve services for settlement of claims of family of deceased members and EPF call centre function 24 by 7.

The Minister released the educative booklet on seasonal employees' eligibility for pension. The contents of booklet brings out the Scheme provision that contributory service in any year, even if contributory period is less than a year, is treated as full year of eligible service for seasonal employee and this will help dispel doubts in minds of members/employers.

EPFIGMS 2.0 Launch

The CBT Chairman also launched the revamped EPFIGMS 2.0 (EPF i Grievance Management System) version which will benefit over 5 crores subscribers and lakhs of employers by speedy and smooth resolution of grievances.

The Board approved the proposal for Selection and Performance Evaluation of next Custodian by the new Consultant which will be appointed on the basis of Report of Five Members’ Committee constituted by the CBT for the purpose.

Withholding Investments in bonds of private sector companies

The CBT has also approved the decision to withhold any further investment in Private Sector Companies Bonds and to compulsorily consider one of the two required ratings necessarily from CRISIL, CARE, ICRA & India Ratings for investments in PSU Bonds category.