The Employees’ Provident Fund Organisation (EPFO) is set to revolutionize the financial landscape for its millions of members with a series of transformative reforms. The Central Board of Trustees (CBT) has approved several key changes, including new investment avenues, simplified claims processes, and enhanced insurance benefits.
Key Reforms:
- Enhanced Investment Options: EPFO will now invest in a wider range of assets, including infrastructure investment trusts (InvITs) and real estate investment trusts (REITs). This diversification is expected to boost returns for members.
- Simplified Claims Process: The auto-claim settlement limit has been doubled to ₹1 lakh, streamlining the process for common claims like housing, marriage, and education advances.
- Improved Insurance Benefits: The Employees’ Deposit Linked Insurance (EDLI) scheme has been significantly upgraded, increasing the maximum coverage to ₹7 lakh.
- Modernized Pension Disbursement: The Centralized Pension Payment System (CPPS) will be fully implemented by January 2025, ensuring seamless pension payments for millions of retirees.
- Employer-Friendly Measures: The EPFO Amnesty Scheme 2024 offers employers a chance to rectify past compliance issues without penalties, encouraging formalization of employment.
These reforms underscore the EPFO’s commitment to providing better financial security and streamlined services to its members. By embracing technological advancements and expanding investment horizons, the organization aims to empower workers and contribute to their overall well-being.