Members of the retirement fund body EPFO will get a loyalty-cum-life benefit of up to Rs 50,000. This benefit will be given at the time of retirement in lieu of contributing to the PF scheme for 20 years or more. The EPFO Board has decided that life benefit will be given in case of permanent disability even if the member has not contributed for less than 20 years.
The Central Board of Trustees (CBT), the decision making body of the Employees Provident Fund Organization (EPFO), has suggested that a minimum sum of Rs 2.5 lakh should be insured on the death of the member. The Board of Trustees has suggested amendments to the Employee Deposit Linked Insurance Scheme (EDLI) to provide a minimum benefit of Rs 2.5 lakh and a loyalty-cum-life benefit.
Members whose average basic salary is up to Rs 5,000 will be given a loyalty-cum-life benefit of Rs 30,000. Similarly, members whose salary ranges from Rs 5,001 to Rs 10,000 will be given a benefit of Rs 40,000. Loyalty-cum-life benefit of Rs 50,000 will be given to all members with monthly salary above Rs 10,000.
The board has recommended this benefit considering the huge amount of Rs 18,119 crore deposited in EDLI. Presently, the dependents of the deceased are given insurance amount up to Rs 6 lakh. There is no provision for minimum insurance nor is there any benefit to the surviving members in case of any benefit or permanent disability.
A senior official said that the decision has been taken in the meeting of the Central Board of Trustees on Wednesday. The benefit of the suggested benefits will be given to the members only after the approval of the government. Initially it will be provided on a pilot basis for two years and will be reviewed thereafter.
According to the proposal, Loyalty-cum-Life Benefit will be given to those retirees at the age of 58 or 60 years who have contributed to the scheme for 20 years or more. Benefits will also be provided in case of permanent disability. In this case, the members who have contributed to the EDLI scheme for less than 20 years will also be eligible for the benefit.