• Skip to main content
  • Skip to secondary menu
  • Skip to primary sidebar
Geod.in Employees News

Geod.in

  • Home
  • PAY MATRIX
  • 7th CPC Pay
  • EXPECTED DA
  • LTC 80 Fare
  • AICPIN
  • DOPT
  • Finmin
  • Get e-mail
    • About Us

Always Popular

7th CPC Pay Matrix7th CPC Pay Calculator
8th CPC NewsTNEB Code List
6th CPC Fitment TableCGHS Rate list 2024
Expected DA July 2024AFD CSD Online Portal
AICPIN October 2024 New7th CPC CEA Form New
KV Fees 2023House Rent Form

Investment of Funds under Employees’ Provident Fund (EPF)

Admin December 23, 2015

Investment of Funds under Employees’ Provident Fund (EPF) 

GOVERNMENT OF INDIA
MINISTRY OF LABOUR AND EMPLOYMENT
LOK SABHA

STARRED QUESTION NO:217
ANSWERED ON:14.12.2015

Investment of Funds under EPF

K. MARAGATHAM
P. C. MOHAN
Will the Minister of

LABOUR AND EMPLOYMENT be pleased to state:-

(a)whether the Government proposes to raise investment limit of pension funds and also mandate the Employees” Provident Fund Organisation (EPFO) to invest upto five per cent of its incremental corpus in exchange traded funds/stock market and if so, the details thereof;

(b)whether this decision of the Government has been vehemently opposed by labour unions and if so, the reasons therefor and the reaction of the Government thereto;

(c)the amount earmarked to be invested and the precautions being taken to secure the interests of the employees due to volatile nature of the stock market;

(d)whether the dividends, if available through such investment, may likely to add to the accounts of beneficiaries and if so, the details thereof; and

(e)whether the Government proposes to introduce National e-payment gateway for collection of PF contribution and if so, the details thereof and whether the yearly audit report of the EPFO is also to be available to the employees and the public as well and if so, the details thereof?

ANSWER

MINISTER OF STATE (IC) FOR LABOUR AND EMPLOYMENT
(SHRI BANDARU DATTATREYA)

(a) to (e): A statement is laid on the Table of the House.

STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (e) OF LOK SABHA STARRED QUESTION NO. 217 TO BE ANSWERED ON 14.12.2015 BY SHRIMATI K. MARAGATHAM AND SHRI P.C. MOHAN REGARDING INVESTMENT OF FUNDS UNDER EPF.

(a) The Government has, vide Notification dated 2nd March, 2015, revised the Investment Pattern (IP) to be followed by Non-Government Provident Funds, Superannuation Funds and Gratuity Funds. The revised IP allows, inter-alia, investment in ‘Equities and Related Investments’ for a minimum of 5 per cent and maximum upto 15 per cent. The revised IP has been made effective from 1st April, 2015. Currently, there is no proposal to increase the said limit in “Equities and Related Investments’.

The Central Board of Trustees (CBT), Employees’ Provident Fund (EPF) has decided to invest 5 per cent of its total investment in Exchange Traded Fund (ETF) during this Financial Year.

(b) Some of the trade unions have opposed the move. However, the proposal was discussed and approved by the CBT, EPF, a tripartite body of employees’, employers’ and Government representatives in its meeting held on 31.03.2015.

(c) As per the decision of the CBT, EPF, investment of 5 per cent of its fresh increment will be invested in Exchange Traded Fund (Rs.5,000/- crore approximately) in this financial year.

ETF as an instrument would be least affected by market fluctuations. The volatility would be minimal in comparison to individual stocks. Employees’ Provident Fund Organisation (EPFO) is in the process of creating an Equity Income Stabilisation Reserve (EISR) for recognition of income and distribution of profit from earning on the investment made in equity and related instruments. These measures would minimize volatility in terms of interest being paid to beneficiaries.

(d) The dividend yield becomes part of the net asset value of the ETF and is, therefore, added to the accounts of Employees’ Provident Fund (EPF) of the employees.

(e) No proposal to introduce National e-payment gateway for collection of PF contribution is under consideration at present. Audit Report of EPFO is placed before the Parliament and, therefore, is a public document.

Source: loksabha.nic.in

Filed Under: Lok Sabha Q&A

Enter your email address:

Delivered by FeedBurner

Recent Comments

  • GTA SA MOD on Pay Matrix Chhattisgarh
  • Shankar on 7th Pay Commission Pay Matrix Table
  • Mp3 Juice on Pay Matrix Gujarat

Primary Sidebar

Search Box

Quick Links

7th CPC Pay Calculator

AFD CSD Price 2023

NPS Withdrawal Form

CGHS Rate 2023

CGHS Claim Form

CGHS Card Form

KV Fees 2023-2024

KV Uniforms 2023-24

KV Result – Search Box

KV School List

7th CPC Salary Calculator

Pay Calculator Karnataka

Pay Matrix Tables

4th,5th,6th & 7th Pay Scale

6th CPC Fitment Table

Civilian Employees

Teachers & Professor

Defence Force

Military MNS

GDS Pay Matrix

Assam

Bihar

Chhattisgarh

Gujarat

Haryana

Jammu & Kashmir

Jharkhand

Karnataka

Madhya Pradesh

Maharashtra

Manipur

Meghalaya

Mizoram

Nagaland

Odisha

Rajasthan

Sikkim

Tamil Nadu

Tripura

Uttar Pradesh

Uttarakhand

West Bengal

Other Topics

TNEB Distribution Code

Holidays 2023 

Sports Calendar 2022-2023

Copyright © 2025 · Central Government Employees & Pensioners News - Geod.in - Log in