The Employee’s Provident Fund Organisation
(EPFO) has come out with three important decisions on that will impact the finances of around four crore subscribers.
Labour Ministry fixes EPF at 8.65 % for FY17
: The Finance Ministry was striving to reduce the EPF interest rate lower to 8.6 percent, but the trade unions were not happy about it. However, Labour Minister Bandaru Dattatreya said EPFO subscribers will get 8.65% interest on provident fund deposits for 2016-17, as decided by the organisation's trustees in December.
More money after retirement
: EPFO subscribers can rejoice as the retirement body has decided to provide a loyalty-cum-life benefit of up to Rs 50,000 on retirement at 58 or 60 years who have contributed to the scheme for 20 years or more.
In a case of permanent disability, the EPFO board has decided to extend the benefit to the members even if they have contributed for less than 20 years.
More investment opportunity
: EPFO, Central Board of Trustees (CBT), approved a special category of investments in liquid mutual funds.
CBT approved investing 10% of EPFO's corpus amounting to Rs 20,000 crore in liquid mutual fund schemes.
The minimum rating of such schemes will have to be AA+ and with a minimum tenure of 30 days.