EPFO board to decide on the interest rate, transfer of unclaimed amount in a board meeting on Saturday

The demand for the Minimum Pension Scheme through EPS 95 Pension Scheme has been in talks for a long time. A decision of Employees' Provident Fund Organisation (EPFO) can give a big relief to lakhs of subscribers of the EPS 95 Pension Scheme. The unclaimed deposits with EPFO stands at around Rs 58,000 crore.

The government started providing a minimum pension of Rs 1,000 per month to the pensioners under EPS, 1995, from September 1, 2014. Pic: IANS

The demand for the Minimum Pension Scheme through EPS 95 Pension Scheme has been in talks for a long time. A decision of Employees' Provident Fund Organisation (EPFO) can give a big relief to lakhs of subscribers of the EPS 95 Pension Scheme. The unclaimed deposits with EPFO stands at around Rs 58,000 crore.

EPFO, in a board meeting scheduled to be held in Guwahati on Saturday, can decide to transfer the unclaimed amount towards the EPS 95 pension scheme. The purpose is to give more pensions to the EPS 95 pension scheme holders by transferring part of the unclaimed amount.

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According to the government's guidelines released in 2015, unclaimed deposits can be transferred to the Senior Citizen Welfare Fund, but there was opposition in the EPFO board on transferring it to the Senior Citizen Welfare Fund in 2015 and 2017. This time the board members have agreed to give more pensions to the EPS 95 pensioners without objection, and the decision of the transfer amount will be taken in the board meeting on Saturday.

Contribution in EPS 95 account is 8.33% of the salary. However, at present, the pensionable salary is considered to be only 15 thousand rupees. With this, this pension share is a maximum of Rs 1250 per month. Under this, a minimum pension of 1000 and a maximum of Rs 7,500 is given. There is a proposal to increase the limit of 15 thousand also in the board meeting. If the limit is increased, then the share of minimum pension will also increase.

In the board meeting of EPFO to be held on Saturday, the interest rate for the financial year 2022 will also be decided. According to information received from sources, in FY22 also, a decision can be taken to give an 8.5% interest rate to all the subscribers. because all the members of EPFO's Central Board of Trustees are in favour of an 8.5% interest rate because the capital position in the current year has been good along with good earnings in equity investment

Key highlights of the meeting:-

- More pension will be available under EPS 95 scheme

- Unclaimed amount will be transferred to the pension holders

- Around 68 lakh people come under the purview of the EPS 95 scheme

The government started providing a minimum pension of Rs 1,000 per month to the pensioners under EPS, 1995, from September 1, 2014. As of now, the fund for the scheme is taken from 8.33 per cent of the scheme holder's salary.

The scheme comprises of widow pension children's pension facility. The minimum pension is Rs 1000, and the maximum is Rs 7,500. The maximum limit of pensionable salary is Rs 15,000.

The meeting may increase the interest rate for FY22 to 8.5 per cent. There has been no change in rates in the last 2 years. Around 7 crore people in the country are covered under PF.

The interest rates were as follows:-

8.75% interest rate in FY14 and FY15

Interest rate 8.80% in FY16

Interest rate 8.65% in FY17

Interest rate 8.55% in FY18

Interest rate 8.65% in FY19

Interest rate 8.5% in FY20

Interest rate 8.5% in FY21

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