EPFO board approves key changes: Default claim limit raised to Rs 1 lakh, pension payout simplified and other decisions

The Central Board of Trustees (CBT) of the Employees’ Provident Fund Organization (EPFO) held its 236th meeting chaired by Union Minister Dr Mansukh Mandaviya on November 30, 2024. The board approved several important reforms aimed at improving the benefits of members and making it easier. procedures.

Here are the details of the meeting’s decisions:

The default claim limit has increased: The default claim payment limit has been increased from Rs 50,000 to Rs 1 lakh. This extension also applies to housing development, marriage, and education.

Simplified Claim Payment: The implementation of the CITES 2.01 project will simplify the claims settlement process with a new operational and accounting system based on the UAN.

Enhanced Pension Benefits: Interest on claims paid before the 25th of the month will be paid up to the date of payment, benefiting members financially.

Central Pension Payment Scheme: A successful trial of the Central Pension Payment System (CPPS) will be rolled out nationally, allowing pensioners to receive their benefits from any bank or branch.

Additional Benefits of EDLI: The extension of the Employees’ Deposit Linked Insurance (EDLI) scheme will provide a minimum benefit of Rs. 2.5 lakh and a maximum of Rs. 7 lakhs.

Average Changes to Employer: The process of compensating banks for collection of EPF contributions has been simplified, and a Reconciliation Scheme has been recommended to encourage voluntary compliance.

Strategic investments: Redemption Policy for ETF investment in CPSE and Bharat 22 is authorized to monetize ‘Interest Account’ of EPF Scheme.

On this occasion, several officials were present like Sushri Shobha Karandlaje, Minister of State for Small and Medium Enterprises, Labor and Employment and Vice-chairman of CBT, EPFO, Sumita Dawra, Secretary (Labour and Employment) and vice-chairman of CBT. of CBT, EPFO ​​and Shri Ramesh Krishnamurthi, Central Provident Fund Commissioner and Member Secretary.