The Employees’ Provident Fund Organisation (EPFO) has recently made headlines for introducing a new facility on the Unified Mobile Application for New-age Governance (UMANG) App. This new feature allows members of the Employees’ Pension Scheme (EPS) 1995 to apply online for Scheme Certificates. But what exactly does this mean for EPS members and how does it work? Let’s delve into the details about this novelty and other functions of EPFO.
Understanding the Employees’ Pension Scheme
Established in 1995, EPS is a social security scheme provided by EPFO. Its primary purpose is to create pension provisions for employees in the organized sector. These provisions come into effect once employees retire at 58 years.
The Objective of Scheme Certificate
A Scheme Certificate is provided to members who withdraw their Employees Provident Fund (EPF) contribution yet wish to maintain their membership with EPFO. This enables them to continue availing pension benefits once they reach retirement age. To be eligible for a pension, members need to have been part of the EPS for a minimum of ten years, cumulatively.
Notably, a Scheme Certificate also helps members when they switch jobs. It ascertains that the pensionable service from the previous job is added to the pensionable service rendered with the new employer, thereby boosting pension benefits. Moreover, it proves valuable for family members who can avail family pension if an eligible member meets an untimely death.
Online Application Requirements
Those who want to benefit from this service must have an active Universal Account Number (UAN) linked with a registered mobile number with EPFO. The move to enable online application will relieve members from the burdensome paperwork, particularly during trying times like the current pandemic.
The Role of EPFO Amid Pandemic
EPFO is playing a vital role by providing 16 services via the UMANG App. These digital solutions have allowed EPF subscribers to access services right from their homes during Covid-19 lockdowns, hassle-free. With the launch of these digital services, EPFO has remained a favoured service provider on the UMANG App.
About the UMANG App
The Unified Mobile Application for New-age Governance, or UMANG, is a secure application developed by the Ministry of Electronics and Information Technology (MeitY), and the National e-Governance Division (NeGD). The app provides users with various pan India e-Government services, including many provided by central and local government bodies and other public services.
Who Manages EPFO?
The administration of EPFO is handled by the Ministry of Labour and Employment, a government organization. Its key function is to manage provident fund and pension accounts for employed individuals in the organized sector across India. Furthermore, it implements the Employees’ Provident Fund and Miscellaneous Provisions Act, 1952, which seeks to institute provident funds for employees in factories and other establishments. Acknowledged as one of the world’s largest social security organizations, EPFO handles a great volume of clients and executes substantial financial transactions.