Posts Tagged ‘Employees Provident Fund Organisation’

Invest Retirement Funds in Stocks for Better Returns :)

retirement fund scheme

The government has asked the Employees Provident Fund Organisation to begin parking 3-5% of its subscribers’ retirement funds in stocks for better returns — a move that would also increase flow of funds to capital markets by up to Rs 13,000 crore.

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The suggestion was made by finance ministry at a recent meeting of the Central Board of Trustees (CBT), the apex decision making body of the EPFO.

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Trustees were told that EPFO could begin by parking 3-5% of its corpus in stocks, if the CBT members had reservations about investing in equities.

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They were further told that long term investments in stock indices would generate healthy returns to the EPFO with negligible risk.

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The finance ministry’s note on investment would be considered by the finance and investment committee, an advisory body of the EPFO, at its next meeting.

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The recommendations of the committee are usually accepted by the CBT, which is headed by the labour minister and has the authority to take policy decisions.

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Unclaimed EPFO money cannot be utilised: Govt

Unclaimed EPFO money cannot be utilised: Govt

The Government on Monday said it has no plans to utilize unclaimed money of Employees Provident Fund Organisation (EPFO) which has accumulated to the tune of Rs 3,837 crore, even as EPFO is making efforts to trace those who have not taken their dues.

As the money, lying in the inoperative accounts belongs to the members or their heirs, and is payable at any time when claims are received. It cannot be utilised for any other purpose,” Minister of State for Employment Harish Rawat said in the Lok Sabha.

He said that as of March 31, 2008, money to the tune of Rs 3,837 was lying unclaimed in the inoperative accounts of Employees Provident fund.

In a written reply in the House he said instructions have been issued to all field officers of EPFO to scrutinise the claims of the inoperative account holders and release the amounts only to the rightful claimants.

EPFO on its part is also making efforts to trace out the beneficiaries through advertisements in newspapers and inviting those who have not preferred their claims for more than three years after leaving their job.

The total membership of the provident fund organisation as on March 2009 was 4.49 crore and the Central Board of Trustees of EPF which met last week had recommended a rate of interest of 8.5 per cent on EPF deposited for 2009-10.

Source : http://timesofindia.indiatimes.com/NEWS-India-Unclaimed-EPFO-money-cannot-be-utilised-Govt/articleshow/4772554.cms