New Delhi [India], November 30 (ANI): The Central Board of Trustees (CBT) of the Employees’ Provident Fund Organisation (EPFO) has approved guidelines for investment in units issued by Public Sector Undertaking (PSU) sponsored Infrastructure Investment Trusts (InvITs) and Real Estate Investment Trusts (REITs), Ministry of Labour and Employment said in a release said on Sunday.
Dr Mansukh Mandaviya, Union Minister for Labour and Employment presided over the 236th meeting of CBT, EPF in New Delhi today.
This decision was part of a broader set of reforms discussed during the CBT meeting, including the approval of several measures aimed at improving member services and operational efficiency.
“CBT approved the guidelines for investment in Units issued by Public Sector Undertaking (PSU) sponsored Infrastructure Investment Trusts (InvITs)/ Real Estate Investment Trusts (REITs) regulated by the Securities and Exchange Board of India and falling under Category V(b) and V(d) of the pattern of investment,” the statement added.
CBT approved a Redemption Policy for ETF investments in CPSE and Bharat 22 to generate income for the EPF Scheme’s ‘Interest Account.’
The policy mandates a minimum five-year holding, returns exceeding government securities, and performance above the CPSE and Bharat 22 indices, as per the release.
Additionally, the CBT approved a significant amendment to paragraph 60(2)(b) of the EPF Scheme, 1952 to ensure that the interest is now paid up to the date of claim settlement.
As per existing provisions, for the claim settled till 24th of the month, interest is paid only upto the end of the preceding month. Now, the interest will be paid to the member upto the date of settlement. This will result in financial benefit to the members and reduce the grievances.
According to the release, the CBT recommended EPFO Amnesty Scheme 2024 to Central Government. The initiative is designed to encourage employers to voluntarily disclose and rectify past non-compliance or under-compliance without facing penalties or legal repercussions.
Now, a simple online declaration from employers will be sufficient to avail the scheme benefits. By providing a limited window for voluntary compliance, the scheme aims to extend social security benefits to more employees, rebuild trust with employers, and promote formalization of the workforce. The scheme was welcomed unanimously by the CBT, the release added.
This amnesty scheme will support the implementation of Employment Linked Incentive Scheme, announced in Union Budget 2024-25, to foster employment generation and incentivize formalization of jobs in the economy.
It is expected that several small establishments (under MSME sector or otherwise) may wish to avail of the benefits under the ELI Scheme but would be worried in enrolling under EPFO. This Amnesty Scheme would provide the confidence to such employers to enrol without any fear or additional financial burden.
Going further, as per the release, the CBT has approved the proposal regarding the grant of Modified Assured Career Progression (MACP) Scheme to Social Security Assistants (SSAs). It acknowledges the need to provide fair and timely career progression opportunities to SSAs, which will strengthen the overall administrative efficiency of the organization. This decision will benefit more than 2350 SSAs of EPFO. (ANI)
