EPFO board meet at this time. PF rate of interest to minimal pension — key issues to look at

Employees Provident Fund Organisation or EPFO Board of Trustees is scheduled to carry its 229th assembly at this time. As per some media reviews, principal agenda of this EPFO’s board assembly at this time might be growth of EPFO’s funding basket, rise in EPF or Provident (PF) rate of interest and rise in minimal pension beneath Employees’ Pension Scheme or EPS from ₹1,000 to ₹3,000.

Here we listing out the important thing issues to be careful from this EPFO board assembly at this time:

1] PF or EPF rate of interest: In FY 2019-20, pension fund regulator had lowered EPF rate of interest to 7-year low of 8.50 per cent on provident fund deposits. This EPF rate of interest was stored unchanged for FY 2020-21. In at this time’ assembly, EPFO board is anticipated to debate EPF rate of interest for FY2021-22. So, speculations are rife that EPFO might improve return on provident fund deposits by saying increased EPF rate of interest.

The EPF or PF rate of interest for FY 19 was 8.65 per cent, 8.55 per cent for FY18 and eight.65 per cent for FY17.

2] Hike in minimal pension beneath EPS: In 2014, EPFO had mounted minimal pension beneath EPF at ₹1000. But, Parliamentary Standing Committee on Labour has lately beneficial that minimal pension must be raised from ₹1,000 to ₹3,000. The committee headed by Bhartruhari Mahtab, a member of parliament from Biju Janata Dal, has famous in its report that present ₹1,000 minimal pension beneath EPS is insufficient. So, elevating the minimal pension beneath EPS from ₹1,000 to ₹3,000 might be one of many vital agendas of this EPFO board assembly at this time.

3] Expansion of EPFO funding: In EPFO Board of Trustees meet at this time, growth of EPFO funding basket might be one of many vital agenda objects. This will allow EPFO to faucet the untapped funding choices like different funding funds (AIFs) and infrastructure funding trusts (InvITs). The Ministry of Labour notified adjustments in EPFO funding choices in April 2021 to incorporate models issued by Category I and Category II AIFs regulated by SEBI or Securities and Exchange Board of India.

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