New Delhi. The Employees’ Provident Fund Organization (EPFO) has issued a new guideline to correct errors in the records related to the Employee Pension Scheme (EPS). Over the past few years, EPFO observed that many employers or companies were either depositing EPS contributions for ineligible employees, or defaulting in depositing the contributions of eligible employees. Due to these mistakes, there was a delay in pension claim processing.
Purpose of new guideline
EPFO aims to resolve all cases under a uniform and fixed procedure. In this, if necessary, physical transfer of funds will also be done so that the audit process remains completely correct and transparent. This guideline will not only improve pension records, but will also ensure prevention of such irregularities in future.
What changes will come for employees
1. Wrong EPS Contribution: If an employee has been included in the EPS by mistake, the amount standing to the credit of the EPS account (Account No. 10) along with interest will be transferred to the Provident Fund Account (Account No. 1) in case of non-exempt institutions. Also, the wrong pension service period will be removed from the employee’s records.
2.Exempt Institutions: The amount from the EPS account will be sent to the concerned PF Trust and the wrong entry will be removed from the pension record of the employee.
3. Situation of no EPS contribution: If the EPS contribution of an eligible employee is not deposited, the amount payable from the Provident Fund Account (Account No. 1) along with interest will be transferred to the Pension Account (Account No. 10). Also, the entire pension service period of the employee will be added to the record, including the non-contributory period.
Employees will get benefits
After these reforms, pension records will be clean and correct, due to which the pension claim process will be completed faster. The pension rights of the employees will be protected and protection from any kind of irregularities in future will be ensured. This step is considered important towards strengthening the transparency of EPFO and protecting the interests of employees.
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