Employee Provident Fund (EPF) interest rate lowered from 8.65% in Financial Year 2018-19 to 8.5% for Financial Year 2019-20
Ministry of Labour & Employment
226th Meeting of Central Board of Trustees Held
6.3 Lakh Pensioners to be Benefited from Restoration of Normal Pension After 15 Years From Date of Commutation
Posted On: 05 MAR 2020
The 226th, Meeting of the Central Board of Trustees (CBT), EPF was held today under the chairmanship of Shri Santosh Kumar Gangwar, Minister of State for Labour & Employment (Independent Charge) and Vice Chairmanship of Shri Heeralal Samariya, Secretary, Ministry of Labour & Employment. Central Provident Fund Commissioner Shri Sunil Barthwal conducted the meeting as Member Secretary, CBT, EPF.
The following key decisions were taken by Central Board, EPF:-
- The Central Board recommended crediting of 8.5% annual rate of interest on the EPF accumulations in the EPF members’ accounts for the year 2019-20.
- The Central Board ratified and appreciated restoration of normal pension after 15 years from the date of commutation, benefitting about 6.3 Lakh pensioners who had opted for commutation under the erstwhile Para 12-A of EPS, 1995 on or before 25.09.2008.
- The Central Board appreciated the timely selection of 240 candidates to the post of Assistants (Assistant Section Officer) in EPFO and also that the selection of 2189 Social Security Assistants is under way.
- The Central Board also appreciated that EPFO has entered into an Agreement with State Bank of India after successfully negotiating waiver of various service charges, which resulted in saving of around Rs. 15 crores annually to EPFO.
- The Central Board accorded approval to the proposal for empanelment of Jammu and Kashmir Bank as one of the collecting banks to collect EPF dues in Jammu and Kashmir.
- The Board recommended to extend the provision of minimum assurance benefit of Rs. 2.5/3 Lakh, payable to family members of deceased employee who dies while in service. Earlier, the benefit of minimum assurance of Rs. 2.5 Lakh and maximum assurance amount of Rs.6 Lakh was not payable where the member worked in more than one establishment during a continuous period of 12 months preceding the month of death. Now Board has approved to extend these benefits even if a member had worked in multiple establishments.
- The Board approved the amendment in Para 28(4) of EDLI Scheme 1976 to delegate the power to Additional Central Provident Fund Commissioners so as to grant online exemption. This will benefit lakhs of employees of more than 25,000 establishments.
Representatives from employers associations, trade unions and senior officials were also present in the meeting.