1991 Batch IAS officer Sumita Dawra, Secretary of Labour & Employment and Chairperson of the Executive Committee of the Central Board of Trustees (CBT), Employees’ Provident Fund Organization (EPFO), presided over the 109th meeting of the Executive Committee.
The meeting, which took place in the presence of Ramesh Krishnamurthi, the Central PF Commissioner and Member-Secretary, covered a range of critical issues, including reforms within the EPFO, financial accounts, policy decisions, and the 71st Annual Report of the organization.
Key Discussions and Decisions:
1- EPFO Reform Agenda: The Executive Committee discussed the EPFO reform agenda, focusing on enhancing the efficiency of the organization’s processes. The meeting highlighted recent changes to streamline claims processing, with a particular emphasis on relaxing the criteria for auto-settlement of claims, expanding the grounds under which claims can be processed, and improving accessibility for members.
2- Annual Accounts and Financial Oversight: The Audited Annual Accounts for the financial years 2021-22 and 2022-23 were presented for consideration. This marked the clearing of the backlog in the organization’s financial reporting. The Committee emphasized the timely preparation and presentation of the 2023-24 annual accounts. To facilitate this, it was approved that two Chartered Accountant firms will be hired to assist in the preparation of financial statements, bringing in automation and professional expertise to ensure timely and efficient account management.
3- Performance Review and Annual Report: The Annual Report for 2023-24 was reviewed, with the Executive Committee noting the steady growth in key performance metrics. Highlights of the report included:
- A 6.6% increase in contributing establishments (7.66 lakh from 7.18 lakh).
- A 7.6% growth in contributing members (7.37 crore from 6.85 crore).
- A significant 55.4% increase in arrear dues realization (Rs 5268 crore from Rs 3390 crore).
- A 7.8% rise in the number of claims settled (4.45 crore from 4.13 crore).
- The Committee recommended the adoption of the report by the Central Board of Trustees.
4- Compassionate Appointment Policy: The Committee also reviewed the draft of the New Compassionate Appointment Policy, 2024, aimed at providing support to the dependents and families of EPFO employees who had passed away, many of whom died during the Covid-19 pandemic. The policy aims to ease the process for dependent family members to secure employment within the organization, offering them much-needed financial and emotional relief.
5- Governance and Administrative Reforms: A significant part of the meeting was dedicated to discussions on improving the governance framework of EPFO. Proposals were made on administrative, financial, and IT-related improvements to ensure better service delivery, enhanced transparency, and overall efficiency within the organization.
6- Streamlining Claims and Member Services: As part of ongoing reforms, the Committee discussed several measures to streamline claims processing and make it easier for EPFO members to claim their dues. Notable among these was the relaxation of the criteria for auto-settlement of claims, which is expected to simplify the process and reduce delays.
Moving Forward:
The discussions and decisions from the 109th meeting of the EPFO Executive Committee reflect the organization’s commitment to improving its operational efficiency, member services, and governance framework. These reforms, along with the adoption of the new compassionate appointment policy and the hiring of professional firms for financial management, are expected to significantly benefit both the employees and the millions of EPFO members across the country.
The EPFO continues to be a cornerstone of India’s social security system, and these reforms underscore the organization’s ongoing efforts to modernize and serve its stakeholders better.
