EPFO Relaxes Withdrawal Rules For EPS-95 Subscribers

The Employees’ Provident Fund Organisation (EPFO) decided to allow the withdrawal of accumulations in the Employees’ Pension Scheme 1995 (EPS-95) for subscribers with just less than six months of service left.

Currently, EPFO subscribers with less than six months of service are permitted to withdraw their accumulations in the Employees’ Provident Fund (PF) account only. EPFO’s Central Board of Trustees (CBT), headed by the Union Minister, Bhupender Yadav, recommended the government make certain amendments to the EPS-95 scheme at its 232nd meeting.

The CBT recommended the government for extending withdrawal benefits from EPS accounts to members with less than six months of service. It also recommended extending a proportionate pensionary benefit for members in the scheme for more than 34 years. It would help pensioners get a higher pension when fixing their retirement benefits.

The CBT recommended enabling equitable transfer value calculation in the cases of exemption grant or cancellation of exemption from EPS-95. It also approved a redemption policy for investments in Exchange Traded Fund (ETF) units.

The CBT approved the redemption of ETF units purchased during the 2018 calendar year for booking capital gains to be included in the earnings while calculating the interest rate for 2022-23. The CBT approved the 69th annual report on the EPFO functioning for 2021-22, which will be tabled in Parliament.

The audited annual account was approved concerning the EPF scheme 1952, 1995, the Employees’ Deposit Linked Insurance (EDLI) Scheme 1976 for 2020-21 and the audit report for placing before the Parliament.

The CBT approved the EPFO’s information security policy and a generic policy for purchasing IT hardware for storage and purchase of database licenses and server databases. The board approved 11 proposals for cancellation or surrender of exemption from the EPF Scheme.

For any clarifications/feedback on the topic, please contact the writer at mayashree.acharya@clear.in

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