Key decisions from the 236th CBT meeting of EPFO | Fusion - WeRIndia

The Central Board of Trustees (CBT), Employees’ Provident Fund Organization (EPFO), convened its 236th meeting on Saturday. Union Minister Mansukh Mandaviya chaired the meeting.

Several impactful decisions were taken in that meeting. Some of them include higher interest payouts, investments in InvITs and REITs, and a redemption policy for ETFs.

Here are the key decisions taken in the meeting:

Enhanced Interest Payouts for Subscribers

EPFO members will now receive interest on their balances up to the settlement date, offering financial benefits and reducing grievances. Previously, claims settled by the 24th of a month received interest only until the preceding month. Additionally, interest-bearing claims can now be processed throughout the month, eliminating delays and ensuring timely settlements.

Impressive Claims Settlement Performance

The board highlighted EPFO’s efficient claims settlement. This financial year, 3.83 crore claims amounting to ₹1.57 lakh crore have been settled.

Auto Claims Settlement Limit Raised

To simplify withdrawals for housing, marriage, and education, the limit for the auto-claims settlement facility has been increased to ₹1 lakh. Earlier it was ₹50,000. The limit would help many people to get more funds.

Investment in InvITs and REITs

The board approved guidelines for investing in Units issued by Public Sector Undertaking-sponsored Infrastructure Investment Trusts (InvITs) and Real Estate Investment Trusts (REITs). These investments aim to diversify EPFO’s portfolio while enhancing returns for members.

ETF Redemption Policy

A new redemption policy for Exchange Traded Fund (ETF) investments in CPSE and Bharat 22 has been approved. It mandates a minimum five-year holding period, returns surpassing government securities, and performance above the CPSE and Bharat 22 indices. The objective is to generate consistent income for the interest account of the EPF Scheme.

These decisions reflect EPFO’s commitment to improving subscriber benefits.

Besides, they also ensure timely settlements and optimize investments to secure higher returns for members.

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