पेंशन निधि विकास प्राधिकरण
PENSION FUND REGULATORY AND DEVELOPMENT AUTHORITY

परामर्श / ADVISORY

File no.: PFRDA/ 16/05/ 112/0018/ 2020-REG-POP

May 02, 2023

प्रति / To

सभी उपस्थिति अस्तित्व, केन्द्रीय अभिलेखपालन अभिकरण तथा एनपीएस न्यास /
All Point of Presence (POPs), Central Record-keeping Agencies (CRAs) and NPS Trust

CBDT द्वारा दिनांक 28 मार्च, 2023 को जारी प्रेस विज्ञप्ति को ध्यान में रखते हुए, उक्त विषय पर दिनांक 23 मार्च, 2023 को जारी परामर्श के अन्तर्गत, PAN को आधार से जोड़ने की तिथि 30 जून, 2023 तक बढ़ा दी गई है।

2. सभी संबंधितों को सलाह दी जाती है कि वे इस संदर्भ में CBDT द्वारा तय की गयी समय-सीमा का पालन करें।

In continuation to our earlier advisory dated March 23, 2023 on the captioned subject, the date for linking PAN with Aadhaar has been extended till June 30, 2023 in accordance with CBDT press release dated March 28, 2023.

2. All concerned are advised to adhere to the timelines prescribed by CBDT in this regard from time to time.

Digitally signed by
SUMEET KAUR SUMEET
KAPOOR KAUR KAPOOR
(सुमीत कौर कपूर / Sumeet Kaur Kapoor)
कार्यकारी निदेशक / Executive Director

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Central Board of Trustees (CBT) approved the proposal to recommend for amendment in Employees Pension Scheme (EPS) 1995

Ministry of Labour & Employment

CBT Approved Proposal to Recommend Amendment in EPS 1995
225th meeting of CBT held on 21st august, 2019 at Hyderabad

22 AUG 2019

In a major decision, the Central Board of Trustees (CBT) EPF in a meeting held at Hyderabad on 21 August 2019, approved the proposal to recommend for amendment in Employees’ Pension Scheme (EPS) 1995 for restoration of commuted value of pension to the Pensioners after 15 years of drawing commutation which will benefit approx. 6.3 lakhs pensioners. This was a long pending demand of the pensioners.

The Minister of State (I/C) for Labour and Employment Shri Santosh Kumar Gangwar whose also Chairman CBT, while addressing the CBT expressed satisfaction that Employees’ Provident Fund Organisation (EPFO) is settling more than 91 % 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.

He also appreciated the good governance strategy adopted by EPFO in saving of Rs.22 crores p.a. due to negotiating reduced OD charges increased FD interest and waiver of collection charges by SBI and further savings of Rs.50 lakhs p.a. due to reduction in collection charges by three banks and achievement of highest yield (8.55%) by Portfolio Managers since July 2015.

The Minister released the educative booklet on seasonal employees regarding special provision in EPS’1995 regarding eligibility of seasonal employees 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.

The Chairman CBT also launched the revamped EPFIGMS 2.0 version which will benefit more than 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.

In the matter of coupon default of IL&FS Ltd, the Board nominated three officers of Investment Division of EPFO to attend the Debenture – Holders’ Meeting that may be held in future and if need be, vote on behalf of the Central Board, EPF.

Selection of ETF Manufacturers: The Board approved the decision to choose the Exchange Traded Fund (ETF) manufacturers through public bidding by 30/10/2019, extension of the term of the present ETF manufacturers (SBI MF and UTI MF) till then and also to authorized the Finance Investment & Audit Committee (FIAC) to conduct the exercise of choosing ETF manufacturers.

Allocation of investment in Nifty 50 and Sensex: The Board approved the proposal that the fund allocation between Nifty 50 and Sensex ETFs be divided evenly, i.e. in the ratio of 50% to 50%.

Appointment of a Consultant in addition to M/s. CRISIL Ltd: The Board approved the nomination of members from employer’s and employee side in a Committee constituted to select and appoint a separate Agency/Consultant in addition to M/s. CRISIL limited, inter-alia to review the working of the Portfolio Managers (PMs), assist the investment Committee in redemption of ETFs, etc.

Appointment of Portfolio Managers for managing funds of Central Board, EPF: The Central Board approved Request for Proposal (RFP) document for appointment of Portfolio Managers and recommendation of the FIAC on appointment of Portfolio Managers.

Exercise of early redemption options available in DHFL Bonds: The Board approved for early redemption option in DHFL bonds recommended by FIAC.

Consent for Transfer of Non- Convertible Debentures (NCDs) of GSPC to GSIL: EPFO has total investment of Rs.2300 Cr in GSPC NCDs. The Board approved the transfer of NCDs of GSPC to GSIL, a wholly owned subsidiary of Govt. of Gujarat and a better rated company which had made an offer to take over debt of GSPC with budgetary support of Government of Gujarat

Legal Entity Identifier Code (LEI) for participation in non- derivative markets by EPFO: In Nov’18, the Reserve Bank Of India (RBI) issued advisory to all eligible market participants in the Financial Markets to obtain LEI Code. The Board approved the nomination of the EPFO Officers as the authorized Officials to obtain LEI Code.

Withholding Investments in bonds of private sector companies: The CBT 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.

The Board ratified the decision of put option in NCDs of Tamil Nadu Power Finance Corporation and also approved put option in bond issued Kerala Finance Corporation & Tamil Nadu Power Finance and Infrastructure Dev. Corp. Ltd.

Shri Raghunathan, Employees’ Representative on the Central Board, EPF appreciated the efforts of the Finance Investment & Audit Committee chaired by the Central Provident Fund Commissioner in finalizing the new Portfolio Managers for investing EPFO’s corpus through a very transparent procedure. He further informed the Board that while SBI’s Fund Management Arm has quoted 94% lesser than SBI PMS in the last mandate, UTI AMC has quoted 28% lesser. This would result in huge savings in portfolio management fees by EPFO.

PIB

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Chief provident fund commissioner (CPFC) V P Joy told FE the matter is on the agenda and that the opinion of the CBT members would be sought.

In a move that will increase the take-home pay of employees, the government plans to prune employers’ contribution to the employees’ provident fund (EPF) to 10% from 12% currently. Sources said the proposal to trim employers’ contribution, aimed at promoting formal employment, will be placed before the central board of trustees (CBT), the highest decision-making body of the employees’ provident fund organisation (EPFO), at its meeting on Saturday.

Chief provident fund commissioner (CPFC) V P Joy told FE the matter is on the agenda and that the opinion of the CBT members would be sought. Joy denied the government was putting pressure on it to take up the matter with the CBT members. Apart from representatives from both the Centre and the states, CBT is represented by the employers’ and workers’ organisations including central trade unions.

This proposal is in line with the government’s policy to extend social security benefits to all workers and at the same time ensure ease of doing business. “The labour ministry feels that by reducing the quantum of employer’s contribution, it can persuade more units to extend the EPF benefits to its workers,” a labour ministry official said. The EPFO currently has 4.15 crore active subscribers.

Under the present law, it is mandatory for units employing 20 or more persons to provide EPF benefits to workers. While employees contribute 12% of the basic pay to EPF, the employer contributes 8.33% towards the employees’ pension scheme and 3.67% to the EPF itself.

Additionally, employers also pay 0.5% towards EDLI, 0.65% as EPF administrative charges and 0.01% as EDLI handling fee, taking the total contribution to 13.61%.

“It is to be condemned that the Centre’s labour department has proposed a reduction in the employers’ contribution to the EPF from 12% to 10% of the basic pay. While the government claims the rights of the workers will be safeguarded, this move to reduce EPF contribution of employers exposes the pro-corporate policies of the government and its only concern is “ease of doing business,” said CITU General secretary Tapan Sen. AITUC’s national secretary DL Sachdeva also said that the proposal would be protested at the meeting.

Vrijesh Upadhyay, general secretary, Bharatiya Mazdoor Sangh (BMS), the biggest trade union and affiliated to the RSS, said savings should rise proportionately with the income.

There has been discussion yet on whether the share of employees too will be lowered, sources said should it be decided that employers will contribute 10%. Driven by a policy to extend social security benefits to workers who are currently outside its ambit, the government was considering lowering employers’ liability towards EPF in the construction sector to 10% of the basic pay from 12% now. Employers with some other sectors already get the benefit.

EPFO has, of late, been on a enrolment drive. Enthused by an encouraging response to its first three-month enrollment programme, through which over 30 lak new subscribers joined the scheme, EPFO extended the programme for another three months with effect from April 1.

Source: www.financialexpress.com

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19-December-2016 16:54 IST

Shri Bandaru Dattatreya chaired the 215th meeting of the Central Board of Trustees (EPF)

CBT recommends 8.65% interest on EPF to its subscribers for the year 2016-17

The Minister of State for Labour and Employment (Independent Charge) Shri Bandaru Dattatreya chaired the 215th meeting of the Central Board of Trustees (EPF) in Bengaluru today.

Following are the key decisions of the Board.

1. The Board adopted the 63rd Annual Report on the work and activities of the EPFO for the year 2015-16 for placing it before the Parliament.

2. Paragraph 60(1) of Employees’ Provident Funds Scheme 1952, requires EPFO to credit to the account of each member interest at such rate as determined by the Central Government in consultation with the Central Board. The interest is credited to the members account on monthly running balances basis with effect from the last day in each year. Interest rates are dependent on return on investments done following the pattern of investment prescribed by the Central Government from time to time under Para 52 of the Scheme.

To recommend the rate of interest for the year 2016-17, the status of estimated amount to the credit of the members as on 01.04.2016, budget estimates (BE) of the Contributions and Withdrawals during 2016-17 and the estimated income from the investment holdings are taken into consideration. Interest income from Provident Fund investments for the year 2016-17 has been estimated mainly on the basis of interest income received/receivable in the financial year 2016-17 including surplus from previous year of Rs 410 crore. It may be noted that the last year income included a surplus from previous year of Rs 1604 crore.

Taking into account relevant factors, the Central Board decided to recommend 8.65% interest to its subscribers for the year 2016-17. Roughly 17 crore subscribers’ accounts will be updated with this interest rate upon acceptance by the Government.

3. Enrolment and Establishment coverage campaign 2017

This special campaign will be run in the following manner:

For effective monitoring and implementation the Zonal Addl. CPFCs shall lead the campaign. District Offices of EPFO will be activated and sufficient number of officers will be exclusively engaged. Meetings with the stakeholders namely Employer & Employee associations and State Governments will be held to make it a success. During the campaign wide publicity of PMRPY and PMPRPY benefits will also be undertaken. Online enrollment facilities to workers will form a key feature of the campaign.

Window will be provided from 01.01.2017 till 31.03.2017.

Following recommendation will be made for approval of the Government.

i. A nominal rate of levy of damages from the establishment for payment of contribution for the past period during the campaign for enrolment will be Rs one (Rs.1) per annum.

ii. Any employer during the campaign period, may send declaration for membership of the employees who were required or entitled to become members of the fund on or after the 1st day of April, 2009 but before the 1st day of January, 2017 who could not be enrolled for any reason.

iii. For the declaration made under this campaign, the employer shall be responsible to remit the contributions and interest payable in accordance with the provisions of the Act and the Schemes read with special provisions notified by the Central Government for enrolment campaign.

iv. No administrative charges will be leviable for the past period in respect of the employees enrolled during the campaign. The necessary amendments will be carried out under the relevant provisions of EPF & EDLI Scheme

v. The interest of workers enrolled under the campaign will be fully protected and they shall be eligible to get all eligible interest and benefits as laid down in the Schemes.

vi. To have uniform and nominal rate of levy of damages from the establishment for payment of contribution for the past period during the campaign for enrolment shall be fixed at Rs one (Rs.1) per annum. Enabling provision shall be inserted under para 32(a) of the EPF Scheme 1952 and under para (5) of Employees Pension Scheme, 1995 and para 8-A of EDLI Scheme, 1976.

This campaign will be suitably staffed and resourced so that employers who come forth to extend social security to their employees receive all possible assistance from EPFO. The action will meet the twin objectives of increasing the enrolment, extending social security benefits to all workers and reducing litigation.

4. The Board approved a set of guidelines for streamlining process of surrender of exemption granted to establishments. Surrender of exemption is a situation where an establishment requests to discontinue the exemption granted to it. As the Act and Scheme is silent regarding the procedure of surrender of exemption by an establishment, the decision assumes importance in helping ease of doing business.

5. The Supreme Court in SLP no.33032-33033 in the matter of R. C. Gupta & others has passed certain orders of credit of amounts in the EPF accounts to the previous accounts of employees in respect of wages more than the statutory wage limit. The orders are to the effect that if amounts exceeding statutory wage ceiling have been credited to EPFO, the classification thereon shall be at the joint option of employers and employees. In accordance, the Central Board approved a proposal for facilitating compliance. The 8.33% of the employer’s contribution proportionate to the salary of employees in excess of Rs.6500/- shall now be credited to the pension scheme along with the interest accrued in the provident fund account The employees however shall be required submit joint application along with their employer wherever the same has not been done. This will be applicable only in those case where the members/pensioners have contributed on higher wages than the statutory wage ceiling of Rs.6500/- with or without exercise of option prior to the issue of notification for increase of wage ceiling to Rs.15000/- effective from 01.09.2014.

6. The administration cost of the Employees’ Provident Fund (EPF) and Employees’ Deposit Linked Insurance Scheme (EDLI), 1976, is met from the administrative and inspection charges collected from the employers of un-exempted and exempted establishments. No charges however are levied to run Employees’ Pension Scheme (EPS), 1995.

The Central Government in consultation with the Central Board of Trustees, EPF fixes the administrative charges from time to time. The administrative charges were last reduced from 1.10% to 0.85% with effect from 1st January, 2015.Considering the need to promote the “Ease of Doing Business in India” and to make Indian business more competitive, and in response to the financial efficiency gained by EPFO, the Central Board decided to recommend further reduction of administrative charges to 0.65 %. It also recommended to abolish administrative charges levied in implementing the EDLI Scheme, 1976 passing on the benefits of efficiency and computerisation to employers. The Central Board also decided to constitute a sub-committee of CBT with members drawn from employees and employer representatives to make a pragmatic study of employment trends for next 10 years and recommend appropriate administrative charges to the Central Board.

7. The Chairman, CBT and the Minister of State for Labour and Employment (Independent charge) announced that Organisational Restructuring has been approved by the Union Government for implementation. This includes Cadre Restructuring which will ensure career progression of 20,000 staff/officers of EPFO. The Minister announced that this will be implemented as a New Year gift.

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After RBI cut interest rate by half a percentage point in September end, finance ministry had said that it will review rate of interest on small savings scheme.

Retirement body EPFO is likely to announce interest rate on PF deposit for 2015-16 at its trustees’ meeting on November 24.

“The proposal for fixing rate of interest on PF deposits for 2015-16 is likely be discussed and approved in the 209th meeting of EPFO’s Central Board of Trustees (CBT) on November 24, 2015,” a source said.

The Employees’ Provident Fund Organisation (EPFO) had provided 8.75 per cent interest on PF deposits for 2013-14 and 2014-15.

Speculation are rife that interest rate on savings schemes can come down in view of interest rate cuts by the Reserve Bank of India earlier this year.

Lowering of interest on rates on savings scheme will help government to nudge banks to bring down lending rates.

After RBI cut interest rate by half a percentage point in September end, finance ministry had said that it will review rate of interest on small savings scheme.

These schemes include Post Office Monthly Income Scheme (MIS), Public Provident Fund (PPF), Post Office Time Deposit Scheme, Senior Citizen’s Savings Scheme, Post Office Savings Account, and Sukanya Samriddhi Accounts.

“It has also been decided that the government will undertake a review of small saving interest rate also,” Economic Affairs Secretary Shaktikanta Das had said.

However, fixing the interest on EPF solely depends on the EPFO’s apex decision making body CBT headed by the Labour Minister as the body provides rate of return from its own income.

Once the rate of interest is decided and announced by the CBT, it is sent to the Finance Ministry for concurrence. The latter approves the proposal if EPFO has sufficient income to provides the proposed rate of interest on PF from its income during the year without any shortfall.

After the approval of Finance Ministry, the rate of interest is notified and credited to the accounts of over five crore subscribers of the body.

Apart from rates of interest, the CBT may also take up two separate proposals to allow its subscribers to pledge their future PF contribution to buy low cost houses and to reduce administrative charges from 0.85 per cent to 0.65 per cent of basic wages.

These two proposal for housing and reduction of administrative charges paid by employers were on agenda for discussion in last meeting of CBT held on September 16.

EPFO had reduced the administrative charges from 1.10 per cent of basic wages to 0.85 per cent in March this year. The further reduction to 0.65 per cent will help companies save around Rs 2,000 crore annually.

Source: The Economic Times

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Amount of EPFO Invested in Private Sector

The below information was submitted by the Minister of State for Labour & Employment Shri  K. Suresh in the Parliament in as a written reply to a question on 19th December, 2012…

Details of amount invested by the Employees Provident Fund Organization (EPFO) in private sector, non-banking companies and annual return as per the coupon rate during the last three years and current year are as under:-

(Rs in Crore)

As the securities are not sold by EPFO in market, there is no question of earning any profit.

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