Employees’ Provident Fund Organisation
The Employees’ Provident Fund Organisation or the EPFO is an organisation that was established by statute (act of parliament) to administer the compulsory contributory Provident Fund Scheme, Pension Scheme and an insurance scheme. It functions under the labour and employment ministry of the GOI. EPFO is also a nodal agency for executing bilateral social security agreements with other nations on the basis of reciprocity. This scheme covers Indian as well as foreign workers. The total assets managed by the organisation are USD 128 billion or Rs.8.5 lakh crore as on March 2016.
The government is set to amend the Employees’ Provident Fund Scheme 1952 to facilitate loss-making PSUs to continue to operate their own PF schemes. As per the existing rules, sick and loss-making PSUs as well as private companies that are on losses for 3 years back to back cannot manage their own PF trusts. There are almost 3000 organisations that operate employees’ savings that are worth almost Rs.2.47 lakh crore via such Provident Fund trusts in order to provide their staff a simpler and quicker access to their retirement corpus at a lesser cost.