~ / email: [email protected]et>fi411Ci1 / Telephone: 011 26172672 ~ / Fax: 01126103100 WEB CIRCULATION q;tJhu;f'l ~ r.tRt ~ (.o;m 'QCf ~ ~, 3:rffi1 ~) Employees' Provident Fund Organisation (Ministry of Labour & Employment, Govt. Of India) d7(§<T cn7'4[(>I4/ Head Office, ..:J ~Fvtfft3TcfU7, 14- ~cw:rr~, ~~-noof.f. Bhavishya Nidhi Bhawan, 14-Bhikaji Cama Place, New Delhi-l I 0066 No. Conf.7 (3)2013/RCs Review Meeting/ Dated: 31 st October 2013 To The Additional CPFC(GJ & MP) All RPFCs in charge of Regional/Sub-Regional Offices in GJ MP Zone Subject: - Record of decisions of the review of Regional/Sub-Regional Offices by the Central PF Commissioner on 25 th October 2013 Sir, I invite your reference to the review meeting of offices in GJ MP Zone held on Friday, 25 th October 2013 at Ahmedabad. This meeting was followed by the meeting with representatives of exempted establishments. Record of decisions of these two meetings, as approved by Central PF Commissioner is enclosed for your perusal and further necessary action. y~S sincerely ~('------- ~\,U\W)? (P.K. U gat) Additional CPFC (Conf)
1. FA& CAO (Para 11, 14 & 18 of record of decisions, review of GJMP Zone)2. ACC{IS)(Para 7, 8, 13, 14 & 21 of record of decisions, review of GJMP Zone)3. CVO4. ACC{HR) (Para 4 of record of decisions, review of GJMP Zone)5. ACC{P)6. ACC{C)(Para 17, 19 & 23 of record of decisions, review of GJMP Zone)7. ACC{CSD)8. CE(PFD)9. All Zonal ACCsand RPFCsin-charge of Regional/ Sub-Regional Offices (other than
those who attended the meeting held on zs" October 2013)10. PSto CPFC.
~(P.K. Udgata)
Additional CPFC (Conf)
Review of GJ MP Zone 25 October 2013, Ahmedabad Page 1
RECORD NOTE OF REVIEW MEETING HELD WITH OFFICERS –IN-
CHARGE OF THE OFFICES IN GUJARAT AND MADHYA PRADESH
ZONE
(Ahmedabad, 25th October 2013 - 9.30 AM)
The meeting was held at Regional Office Ahmedabad. The list of participants is
at Annexure A. RPFC-I (Ahmedabad) welcomed CPFC and all other officers to the
meeting and requested all officers to introduce themselves. After initial introductions
CPFC gave his inaugural address.
2. CPFC appreciated the performance of the Zone in the Service area (claims,
annual accounts and public grievances). He, however, directed that each officer-in-
charge must look at the “Feedback” being received on the EPFiGMS portal and ensure
that “Poor” rating on grievance redressal must not exceed 15%. In case the proportion
exceeds 15% the concerned officers must have a valid explanation for same. Further,
this aspect must form part of review of offices being conducted by Zonal ACCs.
3. CPFC advised that handling of on-line transfer of member accounts needs to
be improved. He expressed his concern at the performance indices in the Compliance
area; more particularly, in the areas of recovery, pending court cases, low proportion
(29%) of ECR members and very less registration of digital signature. CPFC directed
that the instructions contained in the record of discussion of meetings held on 6th
September and 4th October 2013 have to be strictly adhered to.
4. CPFC stated that each Officer-in-charge must personally monitor the
administrative as well as contribution receipts and payments. CPFC further directed
that the administrative and contribution receipts and payments must be monitored for
all offices at EPF HQ level and existing return may be accordingly modified. Similarly
each officer-in-charge must have details about the type of industries which are having
largest number of establishments and members and depositing highest amount of
contribution.
5. CPFC further informed that the national average claim settlement per person
per day is 8 claims. He further directed ACC (GJ MP) that the new norm for the GJ MP
Zone shall be 12 claims per person per day. The resultant excess manpower was
directed to be deployed in ‘’Compliance” and ‘grievance handling’ function. CPFC
directed that ACC (HR), EPF HQ shall circulate this new norm immediately.
6. Regarding the return/rejection ratio of claims, CPFC appreciated the
performance of the Zone. He stated that it has to be ensured that there shall be no
case of offices stopping receipt of claims or acknowledging the claims so received.
Review of GJ MP Zone 25 October 2013, Ahmedabad Page 2
Further, reasons for return/rejection of claims should be analysed. Generic reasons for
same should be culled out and employers/members be educated for removing those
deficiencies. The claims should not be returned on flimsy grounds. This will bring in
transparency and better service to subscribers. CPFC stated that offices having
rejection ratio of 18% and more must workout the action plan for reducing it and
should ensure to bring it down to 12%.
7. Transfer Claims- CPFC directed that all transfer claims should be compulsorily
digitized. If any expenditure for Speed Post is found to have been made on physical
transfer of claims, the same shall be recovered from the salary of concerned officer-
in-charge. Issue was raised that lack of digital signature and incomplete updation of
member master in either the “Transfer-in” or “Transfer-out” office is causing
difficulties in transferring claims in digital form. CPFC directed that IS Division, EPF
Headquarters be directed to brief him on the issue on priority. CPFC advised to
find out the establishments where from the transfer claims are received in bulk in
order to educate the employers/members.
8. CPFC directed that five RPFC-Is from EPF Headquarters shall be assigned
two zones each to ensure follow-up for collection of digital signatures of all
establishments having more than 100 members. He stated that directions shall be
issued by EPF Headquarters making it mandatory for establishments having more than
100 ECR members to submit digital signatures. IS Division, EPF Headquarters was
directed to brief CPFC on the matter for issue of necessary instructions. An issue was
raised regarding the non-receipt of digital signatures from the Government
establishments. CPFC desired the concerned OICs to communicate the names of the
establishments, its responsible officers and other details to him.
9. CPFC directed that all pending cases of collection of CORE banking account
numbers of pensioners be completed within two weeks. It was submitted by some
officers that the pending CORE bank account numbers pertains only to such pensioners,
whose Life Certificate (LC) is pending. CPFC directed that non receipt of LCs be
watched and pension disbursing bank branches be held responsible for not collecting
and furnishing LCs in time. If the LCs are collected directly by EPFO through courier
service or by deploying outside agencies then the cost of collection of LCs be debited
from the commission being paid to banks.
10. CPFC directed that the pending Annual Accounts must be updated by 30th
November 2013. He further stated that it must be ensured that all contributions
received are credited to individual member accounts while updating the same.
Review of GJ MP Zone 25 October 2013, Ahmedabad Page 3
11. CPFC appreciated the Cash Book reconciliation status of the offices in the
Zone. He directed that FA & CAO may depute a team of officers from EPF HQ to
offices in the Zone to ascertain the veracity of reconciliation as also to understand
the operational best-practice which can be then be replicated across all offices of
EPFO to make the cash book reconciliation up-to-date.
12. CPFC directed that collection of interest on belated credits is an area of
utmost importance and has to be completed in any case. He stated that there are
following types of cases in which the money is to be recovered from the Banks:-
i. Delays in crediting money to EPF accounts by SBI Link and Base branches.
ii. Overdraft interest charged by Link/Base branch of SBI. The OD interest is
chargeable only by the Mumbai Main Branch of SBI on the EPF account
maintained with them. Any OD interest debited by Link/Base Branches of SBI
is illegal and has to be recovered with interest.
iii. Undisbursed pension amount. For doing this the pension payment reconciliation
has to be brought up-to-date for all past cases by the end of November 2013.
Once the pension is disbursed through the CORE banking account channel the
system shall take care of the reconciliation issues.
iv. Delayed credit of VDR cheques to EPF accounts by the SBI.
13. It was informed by the officers that the software tool for calculating interest
on belated credits has the “Savings Account” interest rate hard-coded into it. The SB
account interest has been revised upwards recently. As a result the report being
generated by the application software is showing less-amount due from the SBI. It was
requested that the base rate in software may be kept open so as to provide an option
of manually inputting SB accounts interest. CPFC directed that IS Division, EPF
Headquarters be directed to place the facts before him for a suitable decision.
14. Regarding cleaning of negative balances in the member master, it was
informed that lot of negative balances have occurred due to bugs in the application
software and a software patch may resolve all such issues. CPFC directed that IS
Division, EPF Headquarters be directed to appraise him of the issue including the
timeline by which the requisite software patch will be deployed. CPFC also directed
that the negative/excess balances in the establishments DCBR are also to be taken
up and necessary reconciliation completed.
15. CPFC observed that the functional area of Compliance has been neglected and is
resulting in huge amount of revenue loss. EPFO as a custodian of its subscribers’ money
has to be very sensitive to areas where leakages occur. He further stated that
directions were issued in August 2013 and reiterated in September & October 2013 to
Review of GJ MP Zone 25 October 2013, Ahmedabad Page 4
clean up the establishment register. CPFC observed that the Zone has about 11%
establishments which have not been updated since the date of coverage. Further, only
71% of “net” establishments are registered on ECR portal and 87% of establishments
registered are ECR compliant. CPFC also stated that the proportion of ECR members to
total members is just 29%.
16. CPFC stated that all India figures indicate that for the month of September
2013, only 78% of the ECR compliant establishments have actually remitted dues and
contribution has been received only in case of 70% ECR members. If these ratios are
applied to the Zone, the compliance position does not indicate a very happy situation
and requires urgent remedial action. More manpower needs to be immediately deployed
for compliance function by withdrawing persons from the accounts work which has been
automated to a large extent.
17. CPFC directed that the offices in Gujarat state must complete the exercise of
cleaning the establishment master by 30th November 2013 and the offices in Madhya
Pradesh in view of the impending elections shall complete the task by 31st December
2013. ACC (GJ MP) informed the CPFC that the extant instructions on marking the
establishments as closed are very stringent and may require a revision. CPFC advised
him to send a suitable proposal in consultation with his RPFCs to ACC (Compliance)
EPF Headquarters for taking a suitable decision in the matter.
18. CPFC observed that the methodology of claims settlement of non-ECR compliant
establishments needs to be made more stringent and directed that FA & CAO may
put up a formal proposal for issue of orders in this regard. The said proposal may
also examine whether, after due verification, non-ECR compliant establishments can be
marked as closed and the balances transferred to Special Reserve Fund (SRF). The
proposal may include the methodology for processing claims arising out of such
accounts after they are transferred to SRF.
19. CPFC informed that the instructions on issuing PF code numbers are
undergoing comprehensive revision. A draft circular has been issued seeking feedback
from senior officers. A final circular shall be issued shortly. He also informed that it is
proposed to automate the function of issuing PF registration numbers.
20. CPFC stated that the enrolment of contractual employees is an area of
concern. EPF HQ has recently issued a circular dated 8th October 2013 (No. 428
“Office Circulars 2013-14”) and the directions contained therein must be scrupulously
followed. CPFC advised the officers to give suggestions for further improving the
guidelines so issued.
Review of GJ MP Zone 25 October 2013, Ahmedabad Page 5
21. CPFC observed that recovery of outstanding dues is dismal and needs urgent
attention. Similarly the assessments under Section 7A are not being initiated. Even
those which have been initiated are pending for long periods. He directed that IS
Division be asked to release the Compliance MIS software for facilitating
monitoring of this work area on priority.
22. CPFC also informed that the position of recovery of interest (7Q) and
damages (14 B) is very poor across India. A software tool for same has recently been
released and this work area needs to be expedited. Random manual checking of
calculation sheets be got done to ensure that notices are issued correctly. CPFC
directed the ACC to personally monitor this work area.
23. Regarding the pending exemption proposals (about 300 all over India), CPFC
directed ACC (GJ MP) to liaise with ACC (Compliance) EPF HQ to have a meeting at
Delhi, to be attended by ACC (GJ MP), concerned RPFC, officials from the Ministry of
Labour & Employment and EPF HQ for finalizing the issues pertaining to GJ MP Zone.
He further directed that ACC (Compliance) shall ensure that this exercise is done in
respect of all pending exemption proposals across India.
24. CPFC directed ACC to follow up and personally see all the pending audit paras.
After the replies are approved by Zonal ACC, a team from EPF HQ shall be deployed to
examine each of the replies and take final decision on them. CPFC advised that audit
paras may be looked as “systemic correctives” for improving our performance.
The meeting ended with RPFC-I (Ahmedabad) expressing his gratitude to CPFC
for agreeing to visit Ahmedabad for the review and assured him on behalf of all
officers that targets specified by him shall be met.
**********************
Review of GJ MP Zone 25 October 2013, Ahmedabad Page 6
Annexure A
List of Officers who attended the review meeting held on 25th October 2013
Sl No. Name Designation
1. Sh MP Sinha ACC (GJ MP)
2. Sh Krishna Chaudhary RPFC-I (Surat)
3. Dr Ved Prakash RPFC-I (Vadodara)
4. Sh D Remmei RPFC-I (Ahmedabad)
5. Sh Ajay Mehra RPFC-I (MP)
6. Sh Navendu Rai RPFC-II (HQ)
7. Md Rizwanuddin RPFC-II (Gwalior)
8. Sh PK Sinha RPFC-II (Naroda)
9. Sh Krishan Shankar RPFC-II (Bharuch)
10. Sh Dhiraj Gupta RPFC-II (Bhopal)
11. Sh PK Tiwari RPFC-II (Vapi)
12. Sh Vikas Kumar RPFC-II (Rajkot)
13. Sh Shashi Bhusjan Kumar RPFC-II (Ujjain)
14. Sh Prashant Kumar Sharma RPFC-II (Vatwa)
15. Sh CT Thomas Kutty RPFC-II (Jabalpur)
16. Sh DK Malhotra RPFC-II (Sagar)
17. Sh Rajnikant APFC (GJ MP)
********************
Meeting with exempted establishments; 25 October 2013, Ahmedabad 1
RECORD NOTE OF MEETING WITH REPRESENTATIVES OF
EXEMPTED ESTABLISHMENTS AT AHMEDABAD
(25th October 2013, 2.30 PM)
The meeting was held at Regional Office Ahmedabad. List of participants is at
Annexure “A”.
2. ACC (GJ MP) welcomed all the delegates to the interactive session and
requested CPFC to address the gathering. During his inaugural remarks CPFC stated
that today’s interaction is a part of initiative by EPFO to reach out to the exempted
establishments with a view to create a platform where interaction between EPFO and
exempted establishments and amongst exempted establishments could be facilitated.
3. CPFC informed the delegates that EPFO has significantly improved its services
in recent past and service as a sole reason for seeking exemption shall soon cease to be
an issue. He also informed that EPFO is looking at enhancing the benefits available
under the Life insurance Scheme (EDLI).
4. CPFC further stated that he had held a meeting with the exempted
establishments in Delhi on 10th October 2013 and following issues emerged out of that
meeting:-
i. In transfer of member accounts from un-exempt to exempt establishments, the
money is received electronically but “Annex-K” is often delayed. He informed
that this problem shall soon be resolved.
ii. Large numbers of contractual employees working in the exempted
establishments have not been enrolled as PF members. This need to be
addressed on top priority and all such employees must be enrolled.
iii. Exempted establishments giving higher interest rate on PF deposits to members
should share their best practices with EPFO and other exempted trusts for all
round improvement.
CPFC then invited the representatives of exempted establishments to share
their experiences and expectations from EPFO.
5. Representative from IRMA, Anand stated that they are having some problems in
managing their PF trust and are contemplating surrendering the PF exemption. CPFC
directed ACC(GJ MP) and RPFC-I (Ahmedabad) to meet the Trustees’ and Management
of IRMA, Anand to aid and advise them in the process of surrender of exemption.
Meeting with exempted establishments; 25 October 2013, Ahmedabad 2
6. Representative from Reliance Industries stated that numbers of units are being
taken over by them and amalgamation of these units from the view point of exemption
is an area of concern. CPFC directed ACC (GJ MP) and RPFC-I (Ahmedabad) to have a
meeting with the establishment and to list out the issues involved. These issues may be
sent to EPF HQ for further decision in the matter.
7. Representative from L&T requested CPFC to provide training for exempted
establishments at cities such as Vadodara, Ahmedabad, Surat as travelling to Ujjain
for same is not very convenient. CPFC assured that EPF can provide the faculty and
training material, provided the training infrastructure is made available by the
establishments.
8. Representative of Cadila Healthcare sought assistance and advise in securing
the compliance from contractor establishments in respect of migratory contractual
employees. CPFC assured that EPFO is aware of the issues and shall be providing
necessary guidelines soon.
9. The following other suggestions were made by the representative of Exempted
Establishments for consideration of the CPFC:-
i. There should be a one-time amnesty scheme for PF defaulters as is being done
by other Government departments.
ii. The service level interaction with EPFO is fairly intimidating. More on-line
services may be introduced for ensuring greater transparency. The procedures
and processes may be simplified to make them more user-friendly.
iii. The ambiguity in many definitions under the EPF Act may be clarified.
iv. There should be a permanent PF number with the facility to members to obtain
the same directly from the EPFO through on-line registration.
v. Pattern of investment requires modification for getting better returns.
vi. Clubbing services of members at multiple locations/establishments at the time
of settlement of pension claims is a problem area and needs to be looked into.
vii. Delayed declaration of rate of interest on PF deposits creates problems for
exempted trusts.
viii. Member balance of exempted PF trusts may also be displayed on the member
portal of EPFO.
ix. Such meetings should be held at least once a year to facilitate better
interaction between EPFO and exempted trusts.
As regards the pattern of investment CPFC informed that requisite approvals have
been received and the same shall be notified soon. Concluding the session CPFC advised
the delegates to take up specific issues with the concerned EPF officers. He also
Meeting with exempted establishments; 25 October 2013, Ahmedabad 3
advised that trusts can write or email their suggestions / concerns directly to him.
CPFC assured that concerns of generic nature shall be placed in FAQ section of EPFO
website and specific issues shall be resolved as per law. He informed that EPFO shall
be soon having zonal conferences / seminars with exempted trusts for furthering the
dialogue with them. He also advised that the exempted trusts may consider forming a
association/federation of their own, which can then be utilized as a formal platform
for interaction and deliberation.
**********************
Meeting with exempted establishments; 25 October 2013, Ahmedabad 4
Annexure A
LIST OF PARTICIPANTS
Sl No. Name Designation
EMPLOYEES PF ORGANISATION
1. Sh MP Sinha ACC (GJ MP)
2. Sh Krisha Chaudhary RPFC-I (Surat)
3. Dr Ved Prakash RPFC-I (Vadodara)
4. Sh D Remmei RPFC-I (Ahmedabad)
5. Sh Navendu Rai RPFC-II (HQ)
6. Sh Rajnikant APFC (GJ MP)
EXEMPTED ESTBALISHMENTS
7. Sh Hiren Rao Head (CMG & Taxation), The Arvind Mills, Ltd.
Ahmedabad
8. Sh Pramod Bhawalkar Sr. V.P. (HR), Reliance India Limited
9. Sh PK Roy Senior Manager (Finance & Accounts),
Institute of Rural Management IRMA) ,Anand
10. Sh Sunil Pathak, Vice President (HR), ABB India Ltd. Vadodraa
11. Sh Arvind Bajpai AGM (F&A and Admn), L&T Vadodaara
12. Sh Shishir V Antani Astt Manager (F&A), L&T Vadodara
13. Sh RS Sarangi Director & Trustee, Asarwa Mills, Ahmedabad
14. Sh SR Sharma GM & Trustee, Asarwa Mills, Ahmedabad
15. Sh V Chandarmouli Senior VP, Gujarat Heavy Chemicals Ltd.,
Verawal
16. Sh NM Omprakash AGM, Gujarat Heavy Chemicals Ltd., Veraval
17. Sh Pawan Kumar Agarwal VP (Finance), Dhragdhara Chemical Works,
Surendranagar
18. Sh SS Pareek VP (F&C), Aditya Birla Nuvo, Veraval
19. Sh Rishikesh Raval Sr. VP, Cadilla Healthcare Ltd., Ahmedabad
20. Sh Mukesh Mistry Manager, Mudra Communications Ltd.,
