EPFO has increased the limit of auto claim settlement facility from Rs 50,000 to Rs 1 lakh. 1.15 crore claims have been settled through auto settlement method in this financial year. The amount rejection ratio has come down to 14 percent in November 2024.
EPFO Auto claim Limit: There is a relief news for the employees-account holders of the Employees Provident Fund Organization. EPFO has increased the limit of auto claim settlement facility from Rs 50,000 to Rs 1 lakh. The special thing is that this facility will now also be applicable on taking advance for house, marriage and marriage.
27.74 crore employees are expected to get its benefit. To facilitate ‘Ease of Living’, auto claim solution has now been extended to all claims under Article 68K (purpose of education and marriage) and 68B (purpose of housing) of the EPF Scheme, 1952. In this financial year, 1.15 crore claims have been settled by automatic settlement method. The amount rejection ratio has come down to 14 percent in November 2024.
These important decisions were also taken in the 236th meeting of CBT
In fact, recently in the 236th meeting of the Central Board of Trustees (CBT) chaired by Union Labor and Employment Minister Mansukh Mandaviya, information was shared on many major issues. In this meeting, it was told by the EPFO that the limit of autoclaim settlement has been increased.
It was also decided to implement the benefits of the Employees Deposit Linked Insurance Scheme from a date before 28 April 2024, with a minimum insurance benefit of Rs 2.5 lakh and a maximum of Rs 7 lakh. In the ELI scheme, insurance cover is given to the dependents on the death of the employee.
CBT approved important amendment in Section 60(2)(b) of the EPF Scheme, 1952, under which interest will be paid to the members till the date of settlement. This will provide financial benefits to members and reduce complaints. As per the existing provisions, interest for claims settled by 24th of the month was paid only till the end of the previous month. Till now, interest-free claims were not processed from 25th to the end of each month to protect members from loss of interest. After the new decision, these claims will be processed throughout the month, which will reduce pending cases and ensure timely settlement.
78 lakh employees will benefit from CITES 2.01
EPFO’s IT modernization project, CITES 2.01, is to implement a centralized pension payment system, with a targeted operational date of 1 January 2025. This will benefit more than 78 lakh pension scheme holders of the Employees’ Provident Fund Organization. Through this, pensioners will be able to get their pension from any bank and any branch in the country. This will speed up the claim process and eliminate the need to go to the bank for verification etc.
The Central Board of Trustees approved the extension of Employees’ Deposit Linked Insurance Scheme benefits with retrospective effect from 28.04.2024 through General Statutory Rule 299 (E) dated 28.04.2021. This will provide benefits to employees up to a minimum of Rs 2.5 lakh and a maximum of Rs 7 lakh. An actuarial valuation supported proposal with a surplus of Rs 6,385.74 crore has also been approved to ensure seamless benefits to the members of the Employees’ Provident Fund.
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