Context: The Employees’ Provident Fund Organisation (EPFO) has issued an internal circular directing its regional offices on the method to calculate the dues of subscribers who apply for higher Provident Fund (PF) pensions.
- The Employees’ Provident Fund came into existence with the promulgation of the Employees’ Provident Funds Ordinance on the 15th of November 1951.
- It was replaced by the Employees’ Provident Funds Act, of 1952.
- The Employees’ Provident Funds Bill was introduced in the Parliament as Bill Number 15 of the year 1952 as a Bill to provide for the institution of provident funds for employees in factories and other establishments.
- The Act is now referred to as the Employees’ Provident Funds & Miscellaneous Provisions Act, 1952 which extends to the whole of India.
- The Act and Schemes framed there under are administered by a tri-partite Board known as the Central Board of Trustees, Employees’ Provident Fund, consisting of representatives of Government (Both Central and State), Employers, and Employees.
- The Central Board of Trustees administers a contributory provident fund, a 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 138 locations across the country.
- The Organization has a well-equipped training set-up where officers and employees of the Organization as well as Representatives of the Employers and Employees attend sessions for pieces of training and seminars.
- The EPFO is under the administrative control of the Ministry of Labour and Employment, Government of India.
- EPFO Organisation Structure (Annual Report 2019-20) The Board operates three schemes – EPF Scheme 1952, Pension Scheme 1995 (EPS) and Insurance Scheme 1976 (EDLI).
- EPFO is one of the World’s largest Social Security Organisations in terms of clientele and the volume of financial transactions undertaken.
- At present it maintains 24.77 crore accounts (Annual Report 2019-20) pertaining to its members.