The Employees’ Provident Fund Organization (EPFO) is proposing to donate an amount of Rs 100 crore to the Senior Citizens’ Welfare Fund. The proposal is likely to be considered in the meeting of the Central Board of Trustees to be held on Saturday. At the same time, along with the increase in the interest rate, many more benefits can be available for the employees in the meeting.
The Employees’ Provident Fund Organization (EPFO) will propose to transfer an amount of Rs 100 crore from its unclaimed fund to the Senior Citizens Welfare Fund of over Rs 58,000 crore, as per a 2015 government directive.
According to a Finance Ministry notification issued in 2015, unclaimed savings for seven years in EPF and PPF accounts and other small savings schemes should be converted into Senior Citizens Welfare Fund.
The proposal to transfer unclaimed funds to senior citizens’ funds may face opposition from trade unions. A representative of a national trade union said on condition of anonymity, “We will consider the government’s proposal to transfer part of the unclaimed money. We feel that this is not unclaimed money but unresolved money and hence it should remain with EPFO.
interest rate decision
According to a report in Economic Times, another person said that the board will also decide on the interest rate for 2021-22. According to them, given the recent volatility in the stock market after the Russia-Ukraine conflict, the interest rate may be kept at the level of 8.5% for 2020-21 or marginally as low as 8.35-45%.
The impact of the stock market can be
As per the information, EPFO wants to maintain the interest rate at 8.5%. However, the impact of the Russo-Ukraine war on the stock market could affect earnings calculations and interest rates.