Big Move for EPFO: ETF Introduction Set to Boost Returns for Members

Big Move for EPFO: Employees' Provident Fund Organisation members are set for better returns on their deposits through a big decision made at its meeting, chaired by Union Minister Mansukh Mandaviya on Tuesday. The Central Board of Trustees (CBT) approves the new strategy of putting its funds in Exchange Traded Funds (ETFs) for better employee return.

As per the decision, 50% of the employees' ETF investment funds will be invested in Central Public Sector Enterprises (CPSEs) and the Bharat 22 fund for a minimum period of five years. The remaining amount will be invested in government securities and corporate bonds with an expectation of providing higher returns for EPFO members.

In addition to the ETF shift, the CBT also suggested the implementation of the EPFO Amnesty Scheme 2024. The scheme is expected to help employees financially and reduce complaints from members. In addition, the EPF Scheme of 1952 has been suggested to be improved significantly. Among the improvements is the method of calculating interest on claims, which is now settled based on the date of settlement rather than the month's end.

Other resolutions are the enhancement of the auto-claim limit from ₹50,000 to ₹1 lakh, which would help employees take advances for marriage or housing purposes. Further, the meeting sanctioned amendments in the Employees' Deposit Linked Insurance (EDLI) scheme with insurance benefits between ₹2.5 lakh and ₹7 lakh effective from April 28, 2024. All these are expected to further increase the financial security of EPFO members.