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EPFO brings Out Higher Pension Scheme

EPFO brings out Higher In February 2023, the Employees’ Provident Fund Organisation (EPFO) issued guidelines to allow a section.

In February 2023, the Employees’ Provident Fund Organisation (EPFO) issued guidelines to allow a section of its older members to opt for higher pensions under the Employees’ Pension Scheme (EPS).

About Employees’ Provident Fund Organisation

  • It is a statutory bodythat came into existence under the Employees’ Provident Fund and Miscellaneous Provisions Act, of 1952.
  • A tripartite board known as the Central Board of Trustees, Employees’ Provident Fund, administers the Act and Schemes framed thereunder. The board consists of representatives of the government (both central and state), employers, and employees.
  • The Board administers a contributory provident fund, a pension scheme, and an insurance scheme for the workforce engaged in the organized sector in India.
  • It is one of the world’s largest organizations in terms of clientele and the volume of financial transactions undertaken by it.
  • The Employees’ PF Organization (EPFO), consisting of offices at 122 locations across the country, assists the Board.
  • The EPFO is under the administrative control of the Ministry of Labour and Employment, Government of India.
  • The Board operates three schemes, namely:
    • The Employees’ Provident Funds Scheme 1952 (EPF) and its features
      • Accumulation plus interest upon retirement and death.
      • Partial withdrawals allowed for education, marriage, illness, and house construction.
      • Housing scheme for EPFO members to achieve the Prime Minister’s vision of Housing for all by 2022.
    • The Employees’ Pension Scheme 1995 (EPS) and its features
      • The monthly benefit for superannuation/benefit, disability, survivor, widow(er), and children.
      • Minimum pension of disablement.
      • Past service benefit to participants of the erstwhile Family Pension Scheme, 1971.
  • The Employees’ Deposit Linked Insurance Scheme 1976 (EDLI)
    • The benefit is provided in case of the death of an employee who was a member of the scheme at the time of death.
    • The benefit amount is 20 times the wages, a maximum benefit of 6 Lakh.

Way Forward

  • If an employee and an employer are in agreement to allocate share of their total earnings for the provident fund purposes then EPFO should provide full benefit of the same to the employee.
  • The financial burden of the pension on the government is huge. Investment avenues for the EPFO need to be increased so that government is able to provide pensionary benefits to the people. Formation of a separate organization specifically for the investment purposes can also be considered.
  • Enough efforts need to be made to invite Foreign Pension Funds to invest in India.
  • We need to reformulate the pension scheme in a way that provides benefits to employees without placing an onerous burden on the employers.
  • The government contributes only 1.16% of employees’ monthly salary.

Read also:- National Register of Citizens (NRC)

EPFO brings out Higher Pension Scheme,EPFO brings out Higher Pension Scheme

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