Inoperative EPF Accounts that Stopped Earning Interest in 2011, Now to Earn Interest W.E.F. 01.04.2016
Software Module for Disbursal of Salaries to EPFO Launched
EPFO’s highest decision making body, the Central Board of Trustees was there last evening . This was 212th meeting.The Union Minister for Labour and Employment and Chairman CBT, Mr Bandaru Dattatreya after the conclusion of the meeting said that the Board has taken two important decisions.
The first is related to Organisational Restructuring of EPFO. While approving the report in principle, the Board also constituted a Committee to see the anomalies/gaps pointed out by the Board members. The committee chaired by the Central Provident Fund Commissioner was asked to submit this report to the Board in a month’s time.
The Second major decision that was taken is to allow crediting of interest on inoperative accounts. Accounts of members who do not receive contributions for continuous period of three years are treated as “Inoperative accounts”. Interest on these accounts stopped in 2011. The Board to resume crediting interest on such accounts w.e.f. 01.04.2016
This is in view of recent addition designed to paragraph 69(1) (a) that has been amended to provide for withdrawal of full amount on retirement from service after the age of 58 years.Thus, the employer’s contribution in the provident fund account of a member would be holded back by EPFO up to the age of retirement. Hence the decision has been taken, to credit interest as stated in paragraph 60 of the employees ‘Provident Funds Scheme, 1952. Such an account would not be classified as “Inoperative Account” for the purpose of paragraph 72(6) of EPFO Scheme, 1952.
The Union minister on the occasion also released a Software module for disbursal of Salaries to EPFO. The Organisation is bringing IT enabled systems to manage its Human Resources. Better Human Resources management will bring further improvement in the service delivery by the offices.
The software will achieve the following objectives: –
-Preparation of salary across all offices of Organization.
– Provision of Upload facility for existing data to enable fast & correct data capture.
– No need to enter data for subsequent months. Only changes are to be entered.
– Automated TAX calculation.
– Automated Staff Provident Fund and Loan Accounting.
– Provision to make calculation of arrears when required.