EPFO wants to transfer Rs.100 Crore in unclaimed contributions to an elders’ fund

According to a 2015 government regulation, the Employees’ Provident Fund Organisation (EPFO) has proposed transferring 100 crore from its unclaimed funds to the Senior Citizens’ Welfare Fund, in addition to 58,000 crore.

According to people familiar with the event, the suggestion may be taken up for consideration by EPFO’s central board of trustees during its scheduled meeting on Saturday.

According to a 2015 finance ministry regulation, unclaimed funds in EPF and PPF accounts, as well as other minor savings programmes, could be redirected to the Senior Citizen’s Welfare Fund after seven years.

These money, however, have stayed with the EPFO.

The business unions are expected to oppose the move to transfer unclaimed funds to senior residents’ coffers. “We will explore the government‘s suggestion to transfer some of the unclaimed funds. We believe it is not unclaimed money, but rather unsettled money, and hence should remain with the EPFO,” a consultant for a national trade union said on the condition of anonymity.

Interest rate

According to another source, the board will even decide on the interest rate for 2021-22.

According to the people, the interest rate might be kept at the 2020-21 level of 8.5 percent or slightly reduced to 8.35-45 percent in light of the recent volatility in the stock market following the Russia-Ukraine conflict.

“We would want to keep the interest rate at 8.5 percent. However, the impact of the Russia-Ukraine conflict on the inventory market may affect revenue estimates and, as a result, the rate of interest on PF deposits in 2021-22,” said an unnamed member of the Finance Investment and Audit Committee.