EPF, EPS, EDLI & EPFO — Set 9

Correct Answer: B. AI and machine learning for auto-settlement of death claims

EPFO introduced AI-powered auto-settlement for certain EPF claims, including death claims and retirement withdrawals, to reduce processing time. The system verifies KYC data automatically and credits the amount without manual intervention for straightforward cases. This has significantly reduced claim settlement time from weeks to a few days.

Correct Answer: B. Family Pension Scheme 1971

The Employees' Family Pension Scheme, 1971 was replaced by the Employees' Pension Scheme (EPS) in 1995. EPS provided more comprehensive pension benefits including superannuation pension, early pension, invalidity pension, and family pension. Members of the 1971 scheme were given the option to convert their past service into EPS pensionable service.

Correct Answer: C. 12 digits

The correct answer is 12 digits. 12 digits. This topic is frequently tested in competitive examinations such as RRB NTPC, SSC, and UPSC.

Correct Answer: C. Basic pay and Dearness Allowance (DA)

EPF contributions are calculated on basic wages which include basic pay and Dearness Allowance (DA). The Supreme Court in the Surya Roshni case (2019) clarified that certain other allowances may also be included in basic wages for EPF computation. HRA, overtime, and certain other special allowances may be excluded based on the facts of each case.

Correct Answer: B. Allowing seamless PF portability across employers via UAN

The 'One Nation One EPF Account' initiative through the Universal Account Number (UAN) enables seamless portability of EPF accounts across employers and states. It eliminates the need to withdraw and re-deposit PF when changing jobs. This initiative significantly reduces inactive PF accounts and unclaimed amounts.

Correct Answer: C. NIFTY 50 and NIFTY NEXT 50 ETFs

EPFO invests in equity through ETFs tracking the NIFTY 50 and NIFTY NEXT 50 indices. These ETFs are managed by leading asset management companies. The equity investment component earns higher long-term returns compared to government securities, benefiting EPF members.

Correct Answer: B. Claim monthly pension after completing 10 years of service

Form 10D is used to claim monthly EPS pension by members who have completed at least 10 years of pensionable service and have reached the eligible age (58 years for full pension). The form is submitted to the concerned EPFO regional office along with supporting documents. After approval, pension is credited monthly to the member's bank account.

Correct Answer: B. Scheme certificate or withdrawal benefit proportional to service

Members who leave service before completing 10 years under EPS can either receive a withdrawal benefit (lump sum based on years of service) or a scheme certificate that preserves their EPS service record. The scheme certificate is useful if the member expects to join EPF-covered employment again and accumulate more service years. Withdrawal benefit amount is based on a table given in the EPS schedule.

Correct Answer: B. Electronic Challan cum Return (ECR)

The Electronic Challan cum Return (ECR) is an online system through which employers submit monthly PF contributions. The ECR file contains employee-wise contribution details which are uploaded to the EPFO portal. Payment is made electronically through net banking, eliminating paper challans and reducing compliance time.

Correct Answer: B. Government, Employers, and Employees

The CBT is tripartite, comprising representatives of the central government, state governments, employers' organisations, and employees/workers' organisations. This tripartite structure ensures balanced representation of all stakeholders in decision-making. The Union Minister of Labour and Employment chairs the CBT as its ex-officio chairman.