EPFO Board approves key reforms: Auto-claim limit increased to Rs 1 lakh, pension disbursement streamlined & other decisions

The Central Board of Trustees (CBT) of the Employees’ Provident Fund Organisation (EPFO) held the 236th meeting which was chaired by Union Minister Dr Mansukh Mandaviya on November 30, 2024. The Board approved several key reforms aimed at enhancing member benefits and streamlining processes.

Here are the details of the meeting decisions:

Auto-claim limit increased: The limit for auto-claim settlement has been raised from Rs 50,000 to Rs 1 lakh. This extension also applies to advances for housing, marriage, and education.

Simplified Claim Settlement: The implementation of the CITES 2.01 project will streamline the claim settlement process through a newer operating system and UAN-based accounting.

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

Centralised Pension Payment System: The successful pilot of the Centralized Pension Payment System (CPPS) will be rolled out nationally, allowing pensioners to access their benefits from any bank or branch.

Expanded EDLI Benefits: 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 lakh.

Employer-Centric Reforms: The criteria for empanelment of banks for EPF contribution collection have been simplified, and an Amnesty Scheme has been recommended to encourage voluntary compliance.

Strategic Investments: A Redemption Policy for ETF investments in CPSE and Bharat 22 has been approved to generate income for the EPF Scheme’s ‘Interest Account.’

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