At present, EPFO subscribers with less than six months of service left are allowed to withdraw the accumulations in their employees’ provident fund account only.
EPFO’s highest decision making body, the Central Board of Trustees (CBT), recommended the amendments to the EPS-95 scheme to the government. The board recommended that employee with under six months left to serve in their respective organisations also be allowed to withdraw from their EPS account. It also recommended extending proportionate pensionary benefits for members who have been in the scheme for over 34 years.
This will help pensioners in getting higher pension at the time of fixation of the retirement benefit.
According to a labour ministry statement, the board recommended enabling equitable transfer value calculation in cases of grant of exemption or on cancellation of exemption from EPS-95. A redemption policy for its investments in Exchange Traded Fund (ETF) units has also been approved. The board also approved redemption of ETF units purchased during the period calendar year 2018 for booking capital gains to be included in the earnings for calculation of rate of interest for the 2022-23.
CBT also cleared the 69th annual report on functioning of EPFO for 2021-22 which will be tabled in the Parliament.
Currently, EPFO subscribers with less than six months of service left are allowed to withdraw accumulations in their employees’ provident fund account only.