Clarification on exclusion/ exemption of establishment from EPFO
कर्मचारी भविषय निधि संगठन
EMPLOYEES’ PROVIDENT FUND ORGANISATION
श्रम एवं रोजगार मंत्रालय, भारत सरकार
MINISTRY OF LABOUR & EMPLOYMENT, GOVERNMENT OF INDIA
मुृखय कार्यालय/Head Office
भविष्य निधि भवन, 14, भीकाजी कामा प्लेस, नई दिलली-110066
Bhavishya Nidhi Bhawan, 14, Bhikaiji Cama Place, New Delhi-110066
No. Pension.I/17(3)19/RRB (e-file: 22941)
All Addl. CPFCs, ZO
All RPFC-Is / OICs, RO
Sub: Clarification in the matter of Exclusion of employees of Regional Rural Banks from the purview of EPF & MP Act, 1952
Ref: Head Office Circular No. Pension.I/17(3)19/RRB/ dated 15.02.2021
Madam / Sir,
With reference to above cited subject and reference, it is informed that several communications were received from various offices seeking clarifications on the subject matter. The matter has been examined in Head Office in consultation with Compliance Division, Finance Division and IS Division. After examining the same, clarification on the points related to Pension Division are as follows:
|1.||The transfer value under Para 39B (b) requires details of pay in respect of all excluded employees. If the last month Pay is simply taken then EPFO may end up paying excess amount under Transfer Value. It is proposed that average Pay Calculated over the entire service of the employee may be taken which would be more realistic & prudent. Even in calculation of Monthly Pension, Average pay for last 60 months is taken||Provisions of EPS — 1995 may be strictly followed.|
|2.||Some RRB have paid EPS Contribution up to January 2020. The number of full year’s contribution period exceeds more than 24 years in respect of several
employees who are in service prior to 1996. The multiplying factor for employees having more than 24 years of service is not available in Table E. The same may be provided so that transfer value as prescribed under Para 39B of EPS, 19935 can be correctly arrived at.
|If the Cut-off date is 31.03.2018 (as may be communicated by Subject Matter Division), it falls within 24 years as available in Table E. Necessary action may be taken accordingly.|
|3.||How to deal with Scheme Certificate already issued to the members?||Scheme Certificate shall be surrendered by the members and corresponding transfer shall be made as per Table E as per cut off date.|
|4.||PF and Pension claims of the employees of the RRBs are being settled. Guidance has been sought on whether settlement of such claims should be stopped. Guidance has also been sought for only settlements done under EPS 1995.||It must have been stopped as soon as the issue came to notice.|
|5.||Employee of the establishment self updating their Date of Exit through employer portal without intervention and submitting their final withdrawal claim form -19,10C/10D without actually resigning and neither the employer nor this office has any mechanism to verify if the member claimants are still on roils of the establishment or not. De noticing this Office has served a letter dated 16-11-2020 to the Establishment to instruct their employers not to submit final withdrawal claim forms till guidelines from the EPFO, HO are received||As per the cut off date, necessary action is to be taken for Date of exit updation by field office/
establishment/member. If due to wrong updation, any payment is made, it will be treated as irregular and liable for recovery.
2. It is emphasized that such matters of exclusion from the Act are not new and have come in the past a number of times. Further, whereas this issue was faced by many offices across India, references in this regard have been received from only few offices meaning thereby that they could have been resolved by respective offices without any need of intervention of Head Office. It is, accordingly, advised that any further reference to this Office in this regard may be avoided.
3. Further, it is informed that as per ACC-HQ (Compliance) email dated 30.12.2021 (copy enclosed), to bring clarity in the field office to transfer accumulation in case of exclusion, Finance Division, Head Office may issue comprehensive instructions. Accordingly, any further communication in this regard (if required) may be made with it.
[This issues with the approval of Competent Authority.]
Encl: As above
Regional P.F. Commissioner-I (Pension)
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