Half of EPFO board likely to be replaced
At least half of the long term representatives on the central board of trustees of the Employees Provident Fund Organisation (EPFO) will make way for new members when the board is reconstituted by the end of this month, marking a shift from the past model that had no cap on tenure.
This follows a decision last year that no board member will hold the post for more than two terms. Earlier, members could be re-appointed any number of times. The CBT, the apex decision-making body of the EPFO, is reconstituted every five years. The induction of new members is expected to help the organisation push through the modernisation agenda. The CBT, the apex decision-making body of the EPFO, is reconstituted every five years.
The induction of new members is expected to help the organisation push through the modernisation agenda. The CBT comprises 10 members of trade unions or employees’ representatives, 10 members of employers’ representatives, and 20 members from central and state governments. The term of a member is five years.Last year, a clause was inserted in Section 5 of the EPF Scheme, 1952, under which “an outgoing trustee or member shall be eligible for re-appointment as member of the central board or the regional committee, as the case may be, for a maximum of not more than two terms”.
“This will have twin impact. On the one hand, experienced people will go out of the board and, on the other hand, the new norm would help break the nexus created by the long-term serving members,” a senior trade union member told ET, requesting not to be named.The move is seen significantly improving the functioning of the CBT as the new and young members are likely to be open to out-of-the-box ideas for managing the Rs 10-lakh crore corpus of the retirement fund body. The EPFO has over 50 million subscribers and all its decisions, including the annual rate of interest on provident fund savings, has to be approved by the CBT
The Economic Times, New Delhi, 10th May 2018