EPF, EPS, EDLI & EPFO — Set 11

Correct Answer: A. No minimum age

There is no minimum age requirement to claim invalidity pension under EPS. A member who becomes permanently and totally incapacitated while in service can claim invalidity pension regardless of age or years of service. The pension is calculated using the same formula as superannuation pension.

Correct Answer: C. Online EPF interest rate negotiation

EPFO does not allow individual members to negotiate EPF interest rates — rates are determined uniformly by the Central Board of Trustees. Available online services include PF balance enquiry via SMS/UMANG/portal, claim filing, KYC update, nomination, and PF transfer. EPFO's digitisation has made most services accessible without visiting regional offices.

Correct Answer: C. Organised sector salaried workers

EPF primarily covers employees in the organised sector employed by establishments with 20 or more workers. Self-employed individuals, gig workers, and unorganised sector workers are generally not covered under EPF. The Code on Social Security 2020 proposes extending social security coverage to gig and platform workers.

Correct Answer: C. Criminal prosecution and imprisonment up to 1 year plus fine

Under the EPF Act, failure to enroll eligible employees in EPF is a criminal offence punishable with imprisonment up to 1 year and/or fine. Repeated offences attract higher penalties. EPFO's enforcement officers conduct inspections to ensure compliance by covered establishments.

Correct Answer: C. Entire India including all Union Territories

The EPF Act extends to the whole of India. After the Jammu & Kashmir Reorganisation Act 2019, the EPF Act was extended to J&K as well. Earlier, J&K had its own separate Provident Fund Act, but post-reorganisation, the central EPF Act applies uniformly across India.

Correct Answer: B. Enabling online EPF claims and UAN activation

Aadhaar seeding with UAN is mandatory for accessing EPFO's online services, including claim filing, PF transfer, and e-nomination. It enables Aadhaar-based authentication for seamless and paperless processing. Employers are also required to verify employees' Aadhaar as part of KYC compliance.

Correct Answer: B. Helps members trace and claim old unclaimed EPF accounts

EPFO launched an inoperative account helpdesk to help EPF members trace and claim their old, forgotten, or inoperative accounts. Billions of rupees lie unclaimed in inoperative EPF accounts due to job changes without PF transfer. The helpdesk resolves issues related to old accounts and facilitates their settlement or transfer.

Correct Answer: C. Pension increases by 4% for each year of deferral up to age 60

EPS members who continue employment beyond age 58 and defer pension can receive an enhanced pension. For each additional year of service between 58 and 60, the pension is enhanced by 4% per year. This incentivises experienced workers to continue employment while ensuring higher post-retirement income.

Correct Answer: B. The active phase when both employer and employee are contributing

The 'contributory' phase of EPF refers to the period when both the employer and employee are actively making monthly contributions. This contrasts with an 'inoperative' or non-contributing account. Interest accrues during the contributory phase, and the account remains active as long as contributions are regular.

Correct Answer: B. Death claims within 7 days; other claims within 3 days

EPFO has set a target of settling death claims within 7 days and other online claims within 3 days for auto-settlement. The use of AI and Aadhaar-based authentication has significantly reduced claim settlement time. As of 2023, EPFO settles over 80% of claims within 3 days.