EPFO Pension Latest Update: There is big news for those working in the private sector about their PF.
EPFO Pension Latest Update: For those working in the private sector, there is big news about their PF. The structure of EPFO can be changed. In fact, the top officials of the Labor Ministry have made a suggestion to the Labor-related Parliamentary Committee, officials say that the existing structure will have to be changed to keep pension funds like EPFO going forward and more practical. .
Parliamentary committee gave suggestion
In the suggestion given to the Parliamentary Committee, it has been said that instead of ‘Defined benefits’, the system of ‘Defined contributions’ should be implemented. Right now the minimum limit for EPFO pension is fixed, it is a ‘efined benefits’ model in a way. By adopting the Defined Contribution System, the PF members will get the benefit according to their contribution ie, the more the benefit the more contribution.
Pension not increased
The Central Board of Trustees of EPFO had recommended raising the minimum pension to Rs 2000 or Rs 3000 under the EPF pension scheme in August 2019. But the Labor Ministry did not implement it. The parliamentary committee had summoned the labor ministry in this regard. Sources had said that raising the minimum pension to Rs 2000 will cost Rs 4500 crore. If it is increased to Rs 3000, then the government will incur an additional burden of Rs 14595 crore.
Investment in stock market did not benefit
In the meeting, the officials admitted that a large part of the EPFO invested in the stock market proved to be a bad investment. The slowdown in the economy due to the Covid-19 pandemic gave negative returns on these investments. Officials said that out of the fund corpus of Rs 13.7 lakh crore of EPFO, only 5 percent i.e. Rs 4600 crore has been invested in the market. According to officials, the government is trying to ensure that EPFO funds can be avoided by investing risky products and schemes.
Also Read: EPFO: How employees can change their mobile number in EPF UAN, know step by step process
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