EPFO asks zonal offices to prepare budget estimates for its pension schemes

The Employee Provident Fund Organisation (EPFO) has issued a new circular directing all its regional and zonal offices to prepare revised budget estimates for FY24 and budget estimates for FY25. These will relate to its three pension schemes: the Employees' Provident Funds Scheme of 1952, the Employees' Pension Scheme of 1995, and the Employees' Deposit-Linked Insurance Scheme of 1976.

The prepared estimates are set to be submitted for approval to the Central Board of Trustees (CBT). According to the circular, the revised and budget estimates should be based on the actual income and expenditure from 1 April 2023 to 30 September 2023.

“In accordance with the provisions regarding budget contained in Para 58 of the EPF Scheme 1952, on probable Receipts and Expenditure relating to the Administration of the Funds, the Revised Estimates for the year 2023-24 and the Budget Estimates for the year 2024 -25 of the Employees' Provident Fund Organization, based on the actual Income & Expenditure up to 30th September 2023 (i.e. from 01.04.2023 to 30.09.2023), are to be prepared and placed before the Central Board of Trustees, EPF for consideration and approval in this financial year,” the circular reads.

In the internal circular, the social security organisation has also asked its zonal offices to exercise caution in the budget preparation as the revised estimates have overshot budget estimates, but the actual expenditure have been lower than budget estimates for some regions.

“It has been observed that in the last few years, RE was more than BE but the actual expenditure was even less than the BE for some regions. Therefore, due care may be taken while submitting the estimates to the Head Office. Further, RE may be projected in such a manner as to obviate the need for re-appropriation in the last quarter of the financial year,” the order reads.