EPFO News: A centralized system will be introduced through which different accounts of account holders will be merged to form one account. This will make it easier for the job seekers.
New Delhi: A big announcement was made on Saturday in the board meeting of the Central Board of Trustees of the Employees’ Provident Fund Organization (EPFO). It was decided in the meeting that the centralized IT system of Provident Fund (PF) account would be approved. This means that if an employee changes jobs or joins from one company to another, then there will be no hassle of transferring PF account. This work will be done automatically.
The hassle of transferring PF account is over
With the help of centralized system, the account of the employee will be merged. Till now this is the rule that when an employee leaves one company and goes to another company, he either withdraws PF money or transfers it to another company. Till now this work of transferring the account has to be done by yourself. The centralized system will create one account by merging the different accounts of the PF account holders.
Big decision in EPFO meeting
Apart from this, the Central Board of Employees’ Provident Fund Organization (EPFO) decided in the meeting that 5 percent of the annual deposits of EPFO will be invested in alternative investments, including Infrastructure Investment Trust InvITs. The meeting to be held on Saturday was awaited for a long time because many important things had to be decided in it. There is also a discussion to increase the amount of minimum pension and the interest rate of PF. During this, a decision has been taken to increase investment in alternative funds. The Central Board of EPAF has given its permission.
Sunil Bhartwal, Secretary, Ministry of Labor and Employment said, “The board has given the green signal to go ahead (investment in the alternative fund). At present, the focus will be only on the government-backed alternative fund. This includes public sector funds such as InvITs. This will diversify the investment of EPFO.