EPFO 3.0 Reforms: The Central Board of Trustees (CBT), which is the highest decision-making body of the Employees’ Provident Fund Organisation (EPFO), started an important meeting on October 10. The board is expected to take up several major topics, including a long awaited increase in the minimum monthly pension under the Employees’ Pension Scheme (EPS-95).
Possible Increase in Pension
One of the most talked-about proposals is to raise the EPS-95 pension from Rs 1,000 per month to Rs 2,500. This would be a big change for millions of pensioners who have been waiting for relief for years. The last time the pension amount was increased was back in 2014, and since then, inflation has reduced the value of money. The proposal if passed, will help low-income pensioners get better financial support each month.
Officials believe that increasing the pension will not only help retired workers but also make the EPFO scheme more meaningful for future retirees. The final decision will however still need to be approved by the central government.
EPFO 3.0
Another big highlight of the meeting is the discussion on “EPFO 3.0,” a project designed to make EPFO more digital, faster, and easier to use. The idea behind this plan is to create a smoother experience for members and pensioners by bringing major services online. The proposal includes real-time claim settlement, UPI or ATM-based withdrawals, faster death-claim processing, online correction of member details, and even automatic data sharing with employers.
Focus on Investments
Apart from pensions and technology, the CBT is also reviewing how EPFO invests its funds and manages its pension schemes. There will be talks about improving grievance redressal, making fund management more effective, and ensuring better returns for members.
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EPFO serves more than seven crore active members and about 75 lakh pensioners currently. Under EPS-95, employees who have worked for at least 10 years are eligible for pension benefits once they reach 58 years of age. Those who leave earlier may still get reduced benefits or a lump sum amount.
