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Wednesday, January 29, 2020

EPFO trustees to review low-cost housing plan

At present, subscribers with less than 12 months of services are eligible to a maximum sum of Rs 1.2 lakh.

Written by Surabhi | New Delhi | Published: September 8, 2015 12:43:48 am

The Employees’ Provident Fund Organisation’s (EPFO) apex decision making body — the Central Board of Trustees — is expected to review a report on providing housing facilities to subscribers of the scheme when it meets later this month.

An expert panel set up earlier this year had mooted that to provide low-cost housing facilities under the scheme, subscribers should be allowed to pledge their future stream of provident fund (PF) contributions to pay off a housing loan.

The report is now listed for discussion in the CBT’s agenda for its meeting on September 16.

“The committee was of the view that … the majority of the members of the EPF belong to vulnerable sections and given their monthly earnings the amount of loan required and availed by them would be less and the monthly PF contribution stream would be cover a major portion of the loan EMI,” the panel had suggested in its report submitted to the ministry of labour and employment
recently.

The meeting, which will be held in Hyderabad, will also discuss the equity exposure by the EPFO till now. “The CBT will be briefed about the investments made by the EPFO in exchange traded funds and further investments in the remaining months of the fiscal,” said a person familiar with the development.

Besides, the CBT is also expected to consider a proposal to significantly hike the benefits under the Employees’ Deposit Linked Insurance (EDLI) Scheme to Rs 5.5 lakh from the current Rs 3.6 lakh. Additionally, it also seeks to do away with two different calculations for the sum assured, based on the period of service of the subscriber.

At present, subscribers with less than 12 months of services are eligible to a maximum sum of Rs 1.2 lakh.

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