The Central Board of Trustees (CBT) of the Employees' Provident Fund Organisation (EPFO) has announced a major change in the investment policy. Approving the redemption policy related to Exchange Traded Funds (ETFs), the CBT has decided that 50 percent of the amount received from ETFs will be reinvested in Central Public Sector Enterprises (CPSUs) and Bharat 22 Index. The remaining amount will be used in other financial instruments like government securities and corporate bonds. The move is aimed at ensuring more stable and beneficial returns for EPFO ​​members.

It is mandatory to keep the fund for five years

.According to the new policy, the funds invested in ETFs will be kept for at least five years. This decision has been taken keeping in mind the long-term benefits of the members. Also, EPFO ​​has given the green signal to the guidelines for investment in Infrastructure Investment Trusts (InvITs) and Real Estate Investment Trusts (REITs) issued by the public sector regulated by SEBI.

Additional interest will be given on the settlement of claims

An important change in the amendments made in the EPFO ​​rules is that now interest will be paid till the date of settlement of claims. Earlier, interest was paid only till the end of the previous month. The Ministry of Labor believes that this change will not only provide financial benefits to EPFO ​​members but will also reduce the number of complaints.

Fast settlement of claims

Improving the pace of its work, EPFO ​​has settled 3.83 crore claims worth more than Rs 1.57 lakh crore so far in the current financial year. A total of 4.45 crore claims worth Rs 1.82 lakh crore were settled in 2023-24. Along with this, the limit of Auto Claim Settlement Service has been increased from Rs 50,000 to Rs 1 lakh. Now, advance amounts for housing, marriage,e and education can also be claimed under this facility.

7 crore members will get direct benefit

These decisions will benefit 7 crore EPFO ​​members across the country. CBT says that these steps of EPFO ​​will not only ensure higher returns for the members but will also strengthen their financial security.

Expectations from new policies

This step of the government can prove to be important in making EPFO ​​more transparent and beneficial for the members. These new investment options and improvements in auto claim services will further strengthen the trust of the members towards EPFO.