EPFO 3.0 to offer universal pension

The Employees’ Provident Fund Organisation (EPFO) is planning major reforms under its 3.0 phase.

These reforms aim to provide a universal pension cover for all workers, including those in the unorganised sector and gig workers.

The new pension scheme will have a defined contribution framework with contributions from multiple sources such as workers, employers, government, aggregators, and third-party funds.

The contributions will be invested in government-backed securities with annual interest crediting.

At retirement, workers will have the option to choose between an annuity or a systematic withdrawal plan.

The EPFO is also upgrading its technology to incorporate a core banking solution (CBS) for real-time transactions.

This will allow for easier access to funds and claims settlement.

The reforms also include provisions for family and survivor pensions, and the inclusion of gig and platform workers in social security coverage.

The EPFO expects to cover around 2.5 crore gig workers and building and other construction workers (BOCW) over the next five years.