Employees’ Provident Fund Organisation (EPFO) has announced a recent program for employees retiring in 6 months. EPFO retirement fund body decided to allow the withdrawal of accumulations in the Employees’ Pension Scheme 1995 (EPS-95).
The EPS, 1995 is a ‘Defined Contribution-Defined Benefit’ Social Security Scheme. This withdrawal is applicable for those subscribers who have only less than six months of service left. This will help pensioners in getting a higher pension at the time of fixation of the retirement benefit.
However, the board has made it clear that it is only recommended to extend proportionate pensionary benefits for members who have been in the scheme for over 34 years.
According to the statement, the board has recommended enabling equitable transfer value calculation in cases of grant of exemption or cancellation of exemption from EPS-95. As per the current status, the EPFO subscribers who have less than six months of service left are allowed to withdraw the accumulations in their employees’ provident fund accounts only.
The labour ministry said in a statement, “This decision was taken by the EPFO’s apex-making-body Central Board of Trustees (CBT). The CBT was headed by Union Labour Minister Bhupender Yadav at its 232nd meeting and recommended to the government to make certain amendments in the EPS-95 scheme.”
CBT also cleared the 69th annual report on the functioning of EPFO for 2021-22 which will be tabled in the Parliament. The board has recommended to the government to extend withdrawal benefits from EPS accounts to members who have less than six months of service.