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Functioning of EPFO
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As on 31.03.2012, the total
members of Employees’ Provident Fund are 8.55 crore and pensioners under
Employees’ Pensions Scheme are 41.03 Lakh.
The present composition of Central
Board of Trustees (CBT), Employees’ Provident Fund (EPF) is Annexed. The
composition of the CBT, EPF is as per Section 5A of the Employees’ Provident
Fund & Miscellaneous Provisions Act, 1952.
As per clause (e) of sub-section
(1) of Section 5A of the Employees’ Provident Fund & Miscellaneous
Provisions Act, 1952, ten persons representing employees in the
establishments to which the Scheme applies, appointed by the Central
Government after consultation with such organisations of employees as may be
recognized by the Central Government in this behalf.
The Employees and Employers
contribute 12% and 3.67% of wages respectively, to the Provident Fund. In
addition, the employers and Central Government contribute 8.33% and 1.16% of
wages respectively, to the Pension Fund.
As per audited Balance
Sheet of EPFO for the year 2011-12, total balance amount as on 31.03.2012
under the Employees’ Pension Scheme(EPS), 1995 is Rs.162980.03 Crore.
As per latest figure
(unreconciled), the balance in EPS, 95 as on 31.03.2013 is Rs.183,405.36
Crore, (on face value of securities), details of which are as follows:
The interest accrued thereon
during the last three years and current year is as under:-
Year
Interest amount (Rs. In Crore)
2009-10
9,532.34
2010-11
10,888.49
2011-12
13,315.80
2012-13
14,416.65 (unaudited)
This information was given by
Minister of State for Labour & Employment Shri Kodikunnil Suresh in
the Lok Sabha today in reply to a written question.
******
List of Members
of the CBT (EPF) as on date
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Showing posts with label CPFC. Show all posts
Showing posts with label CPFC. Show all posts
May 09, 2013
Functioning of EPFO
May 01, 2013
EPFO all set to invest in infrastructure debt funds
EPFO all set to invest in infrastructure debt funds
IDF
is the government's big idea to provide long-term funds to infrastructure
projects, and the finance ministry has been trying to route insurance and
pension savings into these funds as they can be an important source of stable
and, more importantly, domestic money.
NEW
DELHI: In a big boost for India's trillion-dollar infrastructure development
ambitions, the country's largest pension fund - the Employees' Provident Fund
Organisation - is finally ready to route some of its $100 billion corpus into
the cash-strapped sector through Infrastructure Debt Funds or IDFs.
Such
long-term savings would be crucial for building new infrastructure that faces
severe funding constraints, with banks and developers having little room to
deploy fresh funds into long-gestation projects that are hampered by red tape.
IDF
is the government's big idea to provide long-term funds to infrastructure
projects, and the finance ministry has been trying to route insurance and
pension savings into these funds as they can be an important source of stable
and, more importantly, domestic money.
Since
late 2012, the ministry has been pursuing the idea with the insurance regulator
IRDA and the labour ministry, which oversees the retirement savings of over 6
crore formal sector workers parked with the PF office. The provident fund
department, also known as EPFO, is now veering around to the finance ministry's
point of view.
"The
IDF is similar in nature-though with a different structure-to bonds of longer
tenure issued by Power Finance Corporation or Rural Electrification Corporation
which we already invest in," a senior official in the EPFO told ET.
"We can now invest in bonds with tenures up to 25 years, which enables us
to consider IDF investments," he said, referring to recent changes in
EPFO's investment norms approved by its board.
Under
the new norms, the maximum tenure for AAA-rated PSUs has been raised to 25
years from 15 years, and to 15 years from 8 years for AA-rated PSUs. AAA
ratings denote the highest level of safety for bond investments.
With
EPFO opening up its Rs 5,00,000-crore corpus to IDFs, fresh money could trickle
into infrastructure. Around 3,000 company-run PF trusy with EPFO's investment
norms, could follow suit. EPFO's move will also serve as a cue for other
gratuity and pension funds run by India Inc and the National Pension System run
by the Pension Fund Regulatory and Development Authority (PFRDA). Together,
these funds manage another Rs 2,00,000 crore.
"We
will judge IDFs on the basis of security and suitability for our investment
portfolio," the EPFO official said, adding that the retirement fund would
only invest in these infra debt funds provided they get a credit rating of AA
or AAA. "Unless we get some comfort and security, we wouldn't want to lock
in our funds for 25 years, so a good rating is important," he said, citing
EPFO's recent investment in bonds issued by the bankrupt national carrier, Air
India, on the basis of a sovereign guarantee.
As
of now, EPFO is leaning towards investing in IDFs set up by non-banking finance
companies that are registered with the Reserve Bank of India instead of the
three Sebi-registered IDFs that have been launched recently.
"Infrastructure
is a highly risky sector and we don't want to take on execution risks which
seem to be implicit in the model adopted by Sebi-registered IDFs," the
official explained. "By contrast, IDFs under RBI's watch would invest in
infrastructure projects that are already executed, so their returns may be low,
but the risks are lower too," he said.
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