EPFO gets govt approval to double insurance for subscribers to Rs 6 lakh
New Delhi: Government has finally enforced the decision of retirement fund body EPFO to almost double the maximum sum assured under its insurance scheme to Rs 6 lakh for its 4 crore subscribers.
In September, Employee Provident Fund Organisation's apex decision making body Central Board of Trustees (CBT) had decided to increase benefits under the Employees' Deposit Linked Insurance ( EDLI) scheme from Rs 3.6 lakh to Rs 6 lakh.
However, the notification to amend the scheme could not be issued by Labour Ministry as it was stuck in the Law Ministry.
"The notification to enhance EDLI amount has been issued. It (the maximum sum assured) has been enhanced from Rs 3.6 lakh to Rs 6 lakh," Labour Minister Bandaru Dattatreya told reporters after launching a modernisation plan for National Academy for Training & Research in Social Security (NATRSS).
Besides, he said, the decision to provide 8.8 percent rate of interest to over 4 crore EPFO subscribers for 2015-16 has also been notified.
Some officials present on the occasion said however that they have not received the notification and are still settling the PF claims at 8.75 percent for 2015-16.
The minister was here at NATRSS to preside over a function where institute was renamed as Pandit Deendayal Upadhyaya National Academy of Social Security (PDUNASS).
Under the modernisation plan, PDUNASS will be developed as an international centre of excellence in the area of social security administration.
PDUNASS will also collaborate with bodies like International Social Security Association (ISSA) and International Labour Organisation (ILO) to encourage research in the field of social security.
Given the pre-eminent position that India enjoys in SAARC, it is appropriate that India's foremost Social Security Organisation EPFO, takes a lead in fulfilling the training needs of the other constituent countries of SAARC, officials said.
The minister announced that PDUNASS will be developed as an international centre of excellence in the area of Social Security Administration and Research.
To begin with participation of officers from Social Security Agencies in the South Asian Association for Regional Co-operation (SAARC) countries would be invited.
Social Security Professionals from the BRICS group of countries would be associated for experience sharing and learnings.
Collaboration with a reputed University will also be explored to lend academic support and recognition to the research related work done by PDUNASS.