North India Statesman
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Employees Provident Fund Organisation: The Central Government is considering options to provide comprehensive benefits under social security to the elderly after retirement. Under which employees associated with Employees Provident Fund Organization (EPFO) can be given the option to convert their PF funds into pension. With this, employees will be able to get more pension after retirement. It is expected that the government may make an announcement regarding social security in the budget for the next financial year 2025-26.
According to sources, on the orders of the Central Government, the Ministry of Labor and Employment is already working on options to increase the scope of the Social Security Scheme. Under the new options, many types of facilities will be provided to the workers. An employee associated with EPFO can convert the amount deposited in the PF fund as pension at the time of retirement. This means that at the time of retirement, if an employee feels that he will need more pension in old age, he can transfer the amount deposited in the fund to the pension fund. This will increase the amount received as pension.
These facilities can also be available
1. Interest will continue on PF fund even after retirement
Thus, if an employee at the time of retirement feels that he has other income options and does not want pension on retirement at the age of 58 but wants to start pension at 60-65 or any other age, then this option is also available. Will be provided. Meanwhile, annual interest will be added on the amount deposited in the pension fund and pension will start from the same account at the age one wants to start.
2. Arrangement for depositing additional amount in PF account
The ministry wants EPFO members to be allowed to deposit more money in their accounts over and above the regular fixed monthly amount. This option has been debated for a long time but now consensus is emerging at many levels. If such facility is available then more amount can be deposited in the PF account. This will allow employees to deposit more money under social security and get more pension on retirement.
3. Consider tax exemption on additional contributions
The ministry believes that there are many people who have savings but do not invest in FDs in banks because they get seven percent or less interest annually. Whereas the amount deposited in PF account gives more than eight and a quarter percent interest.
Meanwhile, if facility of more amount is available then people will start depositing money in EPF account for future security. In this regard, discussions have also been held with the Finance Ministry to provide the benefit of tax exemption on such contributions. So that people can be encouraged to contribute money.
4. Consideration of expansion of IT systems
At present, work is going on to make the EPFO system like banking. IT System 3.0 is likely to be completed in June. Due to which people will get facilities like banking. Along with this, the government is also working on options related to increasing benefits under social security. Which can be announced during the budget or even after that. Regular discussions are going on between EPFO, Labor and Employment Ministry regarding this.
