Government approves setting up of centralised IT system for PF accounts; move to remove duplication, requirement of transfer on job change

Post this, the field functionalities will move on a central database in a phased manner enabling smoother operations and enhanced service delivery, a government release said

Decision was taken during a 229th board meeting which was chaired by Union Minister of Labour and Employment Bhupendra Yadav. Source: PIB

In a big development, the Central Board of Trustees (CBT) of the Employees’ Provident Fund Organisation (EPFO) today gave its approval for a centralised IT system for the provident fund (PF) accounts. The centralised system is expected to merge various PF accounts of individuals and convert it into one.

This is expected to remove problems related to transfer of PF accounts on changing of jobs by individuals.

See Zee Business Live TV Streaming Below:

TRENDING NOW

Post this, the field functionalities will move on a central database in a phased manner enabling smoother operations and enhanced service delivery, a government release said. The centralised system will facilitate de‐duplication and merger of all PF accounts of any member, the release further said adding that the system will remove the requirement of transfer of account on change of job.

The decision was taken during a 229th board meeting which was chaired by Union Minister of Labour and Employment Bhupendra Yadav. The meeting was also attended by Vice-chairmain Rameswar Teli, who is Minister of State (MoS) for Labour and Employment.

CBT is the apex decision-making body of EPFO.

The Board also decided to empower the Finance Investment & Audit Committee (FIAC) to decide upon the investment options, on case-to-case basis, for investment in all such asset classes which are included in the Pattern of Investment as notified by Government of India.

The CBT also approved the draft 68th annual report on the functioning of the EPFO for the year 2020-21, with the recommendation to place it before the Parliament, through Central Government.

The suggestion of the Chairman to constitute four sub-committees, comprising members of the Board from employees, employers’ side as well as from representatives of the Government side was also approved by the Board.

Two committees on Establishment related matters and futuristic implementation of Social Security Code will be headed by the Minister of State Labour and Employment, the release said.

The remaining two committees on Digital capacity building and Pension related issues will be headed by Union Labour and Employment Secretary, it further said.

EPFO is one of the World's largest Social Security Organisations in terms of clientele and the volume of financial transactions undertaken.

The Central Board of Trustees administers a contributory provident fund, pension scheme and an insurance scheme for the workforce engaged in the organized sector in India. The Board is assisted by the Employees’ PF Organization (EPFO), consisting of offices at 135 locations across the country.

The EPFO is under the administrative control of Ministry of Labour and Employment, Government of India.

TAGS:

EPFO Bhupendra Yadav