Skip to main content

Govt keen to have more under EPFO cover

THE government is considering an ordinance to get more organisations to join the Employees’ Provident Fund Organisation (EPFO), bringing additional 45 lakh workers within the coverage of a formal retirement benefit scheme.

At present, all non-government establishments having more than 20 employees have to park the retirement savings of their employees with the Employees’ Provident Fund (EPF), the flagship retirement benefit scheme of the EPFO. A small portion of the employee’s saving also goes to another scheme run by the EPFO, the Employees’ Pension Scheme (EPS).

The government wants to bring down the threshold limit to establishments having more than 10 employees. This will add another 45 lakh subscribers to EPF’s current about four crore members.

Since the government does not have the time to move a formal Bill to effect the change in the current session of Parliament, it is considering an ordinance. The government is keen to bring an amendment and ensure social security cover for more workers at the earliest. However, it is unlikely that the proposal, which is with the Cabinet, will be ready for formal presentation before Parliament in the on-going session. The government is keen to amend the EPF Act before the elections next year, and is mulling over the ordinance option. The government can make changes to law through ordinance when Parliament is not in session but it would have to be approved subsequently by Parliament.

The Central Board of Trustees (CBT), the core committee of the EPFO, had approved in August the suggestion to lower the threshold limit. While benefits of expanding the scope of the scheme are acknowledged, doubts have been raised whether the EPFO is ready for the same. The finance ministry is concerned how the EPFO, that is already facing deficit, will manage social security of another 45 lakh employees.

Although no annual evaluation of the pension fund has been put on record by the EPFO since 2004, the EPS is believed to be running a deficit of about Rs 45,000 crore. Deficit is a measure of excess of liabilities over assets. Lowering the threshold limit of coverage, it is feared, can cause the deficit in the pension fund to increase sharply. The official added that the finance ministry was also reluctant as wider coverage would mean increase in the dole given out by the government through its contribution to the pension scheme.

Popular posts from this blog

Post Office Deposits Interest Rates

Best SIP Funds to Invest Online   SIPs are Best Investments when Stock Market is high volatile. Invest in Best Mutual Fund SIPs and get good returns over a period of time. Know Top SIP Funds to Invest Save Tax Get Rich For further information on Top SIP Mutual Funds contact  Save Tax Get Rich on 94 8300 8300 OR You can write to us at Invest [at] SaveTaxGetRich [dot] Com

HDFC Capital Protection Oriented Fund – Series II 36M May 2014 NFO

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300     HDFC Capital Protection Oriented Fund – Series II 36M May 2014 NFO will be open for subscription from 16th May 2014 to 30th May 2014. The key features of the scheme are as mentioned below:   Type of Scheme A Close Ended Capital Protection Oriented Income Scheme Benchmark Crisil MIP Blended Index Fund Manager Mr. Anil Bamboli , Mr. Vinay R Kulkarni & Mr. Rakesh Vyas New Fund Offer (NFO) Period 16 th May 2014 to 30 th May 2014. Minimum Application Amount Rs. 5000 and in multiples of Rs.10 thereafter Plans/ Options Offered Growth and Dividend Payout Facility Liquidity To be listed For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call

How to PPF Account extension after maturity

A PPF account can be retained after maturity without making any further deposits. The balance will continue to earn interest till it is closed. Public provident fund or PPF remains one of the most popular savings options for the long term despite a gradual decline in interest rates over the years. PPF accounts have a maturity period of 15 years and they can be extended. If there is no fund requirement, financial planners say, PPF account holders should extend the account beyond 15 years. In terms of income tax implications, PPF accounts enjoy the benefit of EEE (exempt-exempt-exempt) status . Under Section 80C, contribution up to Rs 1.5 lakh in a financial year qualifies for income tax deduction. The interest earned and maturity proceeds are also tax free. What are your options when a PPF account matures? 1) A PPF account can be closed after the expiry of 15 financial years from the end of the year in which the account was opened. 2) The subscriber can retain his

Indian Railways Seat Availability and Train Fare Enquiry

Enter the PNR for your train booking to find its status. Your 10 Digit PNR : Are you looking for Indian Railways Seat Availability information for trains between any two Indian Railway stations? Well, here is a detailed guide to find out seat availability and train fare information for journey between any two stations by any train on any chosen journey date. The holiday season is around and Indian all around are busy making Indian Railways Reservation .But before making the reservation, they would like to check berth availability information and here is a detailed step by step guide to check seat availability and train fare. How to check Indian Railways seat availability · 1. Go to the Indian Railways Passenger Reservation Enquiry page to check seat availability by clicking here [link] · 2. Enter the first few characters of the Originating Station against Source Station Name. For eg., if the origination station is chennai, enter "Che" against Sou

SUNDARAM SELECT MIDCAP

Best SIP Funds Online   SUNDARAM SELECT MIDCAP is a mid-cap focused fund has shown remarkable consistency in outperforming both its benchmark index and the category over many years. It takes a sharper tilt towards mid-caps compared to its peers. While the fund manager used to take large positions in his conviction picks, he has moderated exposure to his top bets over the past year. He has also chosen to stay away from capital guzzling businesses instead favouring those with efficient capital allocation practices. SUNDARAM SELECT MIDCAP fund boasts of a superior risk-reward profile compared to many of its peers, and while it has underper formed slightly over the past one year, its proven track record in the hands of a capable fund manager provides comfort. It remains a worthy pick in the midcap basket. SIPs are when Stock Market is high volatile. Invest in Best Mutual Fund SIPs and get good returns over a period of time. Know Top SIP Funds to Invest Save Tax Get Rich For further inform
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now