EPFO allows employees with less than 6 months of service remaining to withdraw money from their EPS-95 accounts

1 Nov 2022 , 09:16 AM

On Monday, the retirement fund organization EPFO made the decision to permit subscribers with less than six months of service remaining to withdraw their accumulations from the Employees’ Pension Scheme of 1995 (EPS-95).

Only subscribers to the Employees’ Provident Fund Organisation (EPFO) who have less than six months of service remaining are currently permitted to withdraw the accumulations in their EPF accounts.

At its 232nd meeting on Monday, the Central Board of Trustees (CBT), the top decision-making body of the EPFO and chaired by Union Labor Minister Bhupender Yadav, recommended to the government that changes be made to the EPS-95 plan.

It noted that the board has advised the government to extend EPS withdrawal benefits to members with fewer than six months of service. The board has also suggested that members who have been in the program for more than 34 years be granted proportionate pensionary benefits.

As a result, pensioners will receive larger pensions when the retirement benefit is fixed. The board has advised making it possible to calculate equitable transfer value when an exemption from EPS-95 is granted or revoked, according to the statement.

Additionally, a redemption policy for its exchange-traded fund (ETF) unit investments has been approved. The board also approved the redemption of ETF units purchased in the calendar year 2018 for recording capital gains to be taken into account in earnings for determining the interest rate for 2022—2023.

The 69th annual report on the operation of the EPFO for 2021—2022 was approved by the CBT, among other things, and will be presented to Parliament.