EPF, EPS, EDLI & EPFO — Set 12

Correct Answer: B. EPF

VPF (Voluntary Provident Fund) contributions earn the same interest rate as regular EPF, currently 8.25% for 2023-24. VPF is essentially an extension of EPF where the employee voluntarily contributes above the mandatory 12%. The same tax benefits (EEE status) apply to VPF contributions within specified limits.

Correct Answer: C. EPFO itself through its centralised database

Unlike NPS which uses external central record keeping agencies (CRAs) like NSDL-CRA and KFintech, EPFO maintains its own centralised database for member records. The Centralised Record Keeping and Accounting System (CWAS) of EPFO manages all member account records. This in-house system stores UAN, contribution history, and member KYC data.

Correct Answer: C. An employee drawing wages above the threshold on joining EPF (not mandatorily covered)

Under the EPF Act, an 'excluded employee' is one who joined employment earning more than the wage ceiling (Rs 15,000 per month) and is not a member of EPF. Such employees can join EPF voluntarily with the employer's consent. However, if they were EPF members in a previous job, they are not excluded and must continue EPF membership.

Correct Answer: B. New Delhi

EPFO's head office is located in New Delhi. The Central Board of Trustees meetings are generally held at the head office or its associated venues. EPFO's regional offices are spread across major cities including Mumbai, Chennai, Kolkata, and Hyderabad.

Correct Answer: C. 011-22901405

EPF members can check their PF balance by giving a missed call to 011-22901406 from their registered mobile number. EPFO also provides SMS alerts on contribution credits. These facilities make PF balance information accessible even to members without smartphones or internet access.

Correct Answer: C. 3

EPFO administers three schemes under the Employees' Provident Funds and Miscellaneous Provisions Act, 1952: (1) Employees' Provident Fund Scheme 1952, (2) Employees' Pension Scheme 1995, and (3) Employees' Deposit Linked Insurance Scheme 1976. These three schemes collectively provide retirement savings, pension, and life insurance to organised sector workers.

Correct Answer: B. PF Account Number (Member ID)

Each EPF member has a PF Account Number (Member ID) allotted by the employer, unique to that specific employer. The Member ID changes with each job change, but all Member IDs are linked to the same UAN. The UAN is the universal identifier while the Member ID is employer-specific.

Correct Answer: D. Both A and C

EPFO has integrated with DigiLocker to allow members to access their EPF passbook as a digitally stored document. Additionally, Aadhaar-based KYC verification through DigiLocker is used for claim processing. This integration reduces paperwork and enables secure, paperless service delivery.

Correct Answer: C. Average of last 60 months' salary (subject to Rs 15,000 ceiling)

Pensionable salary under EPS is calculated as the average of the last 60 months (5 years) of salary, subject to the Rs 15,000 wage ceiling. For higher pension option members (post-Supreme Court 2022 judgment), it is based on actual wages. The 60-month averaging prevents distortion from sudden salary spikes near retirement.

Correct Answer: D. 2021

The maximum EDLI insurance benefit was raised to Rs 7 lakh in 2021. The minimum floor for EDLI was also fixed at Rs 2.5 lakh in the same revision. These enhancements were made to provide better financial protection to the families of EPF members who die while in service.