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    EPFO planning to credit pension to over 73 lakh pensioners in one go

    EPFO planning to credit pension to over 73 lakh pensioners in one go

    EPFO planning to credit pension to over 73 lakh pensioners in one go
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    By CNBCTV18.com  IST (Published)

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    The Employees' Provident Fund Organisation distributes pensions to recipients in their region independently through more than 138 regional offices. As a result, the pensioners of various regional offices receive their pensions on various days or at various times.

    The Employees' Provident Fund Organisation (EPFO) is likely to accept a proposal for establishing a central pension disbursal system in its next meeting scheduled on July 29 and 30.
    If the proposal is approved, it will enable EPFO to credit the benefit to the bank accounts of more than 73 lakh pensioners simultaneously throughout India.
    At present, the benefit reaches pensioners on various days and times because the EPFO distributes pensions to recipients in their region independently through more than 138 regional offices.
    "A proposal for setting up a central pension disbursal system will be placed in the EPFO's apex decision-making body Central Board of Trustees (CBT) in a meeting scheduled on July 29 and 30," a source told news agency PTI.
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    EPFO, along with Employees' State Insurance, is one of the two primary statutory social security organizations that reports to the Ministry of Labour and Employment of the Government of India.
    EPFO is in charge of managing and regulating provident funds in India. The Central Board of Trustees (CBT), a statutory body created by the Employees' Provident Fund and Miscellaneous Provisions (EPF&MP) Act, 1952, is the governing body of the EPFO.
    According to PTI, the source further added that pensions would be disbursed through a central database of 138 regional offices in the country, enabling the benefit to be credited into 73 lakh beneficiaries' bank accounts simultaneously.
    Recently in the 229th meeting of the CBT held in November last year the trustees approved the proposal for the development of centralized IT-enabled systems by C-DAC.
    Additionally, the labour ministry announced after the meeting that field functions would be moved to a central database in a phased approach to enable smoother operations and enhanced service delivery. PF accounts of any member will be de-duplicated and merged through the centralized system. It had said it would remove the requirement for a transfer of account upon changing jobs.
    “The CBT will also consider and approve a proposal to allow withdrawal of deposits from pension accounts by subscribers who have contributed for less than six months. Presently, only those subscribers are eligible for withdrawal from their pension accounts who have contributed for six months to 10 years,” PTI reported.
    In case of an untimely death of a member, EPFO provides provident fund benefits, pension benefits to the members, and family pensions and insurance benefits to the members' families.
    (With inputs from PTI)
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