Employee Pension Scheme: Board CBT of Employees’ Provident Fund Organization (EPFO) has a meeting on March 12 in Guwahati. In the meeting, the interest rates for the current financial year of EPFO are to be discussed.
Employee Pension scheme: There is big news for private and government employees. EPFO can announce interest on Saturday i.e. 12 March. At the same time, a big decision can also be taken regarding the EPS- Employee Pension Scheme. The Board of Employees’ Provident Fund Organization (EPFO) CBT has a meeting on March 12 in Guwahati.
In the meeting, the interest rates for the current financial year of EPFO are to be discussed. The Central Board of Trustees will decide the interest for the current financial year in the meeting and then submit its recommendations to the Finance Ministry. If sources are to be believed, it can be agreed to pay 8.5% interest in the current financial year as well. Because, in the current year, the capital position is fine and equity investments have also made good returns.
Interest rate will not change
The current financial year can be challenging for EPFO to pay more than 8.5% interest. Equity investments have yielded good returns, but increasing the interest rate is difficult due to less options. Bond investments were less than expected and capital infusion could not take place. EPFO invests 15% in equity and the rest in debt. In such a situation, paying the current interest will also be a challenge. The Finance Investment and Audit Committee of EPFO has sent its recommendations to the CBT. Now the final decision on the interest rate will be taken in the meeting to be held today.
Decision may be taken on giving more pension
A decision of EPFO can give big relief to lakhs of subscribers of EPS-95 pension scheme. There is an unclaimed amount of Rs 58,000 crore lying with the EPFO. A decision will be taken in the board meeting of EPFO on Saturday to transfer some part of it to the EPS-95 pension scheme. The purpose is to give more pension to EPS 95 pension scheme holders by transferring part of the unclaimed amount.
Decision will be taken in board meeting
The unclaimed deposits can be transferred to the Senior Citizen Welfare Fund as per the government’s 2015 guidelines. But, there was protest in the EPFO board over its transfer to the Senior Citizens Welfare Fund in 2015 and 2017. That’s why it was not possible, but this time the board members have agreed to give more pension to the EPS-95 pensioners than the unclaimed amount and the decision of the transfer amount will be taken in the board meeting on Saturday.
The limit of Rs 15000 can be removed
8.33% of salary is deposited in EPS-95. However, at present the pensionable salary is only 15 thousand rupees. With this, this pension share is maximum Rs 1,250 per month. Under this, a minimum pension of Rs 1000 and a maximum of Rs 7,500 is given. The proposal to increase the limit of 15 thousand can also be discussed in the board meeting. If the limit increases, then the share of minimum pension will also increase.
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