New Delhi: More than 6 crore shareholders of Employees Provident Fund Organization (EPFO) can get a big gift soon. The amount of insurance received on PF Account will increase soon. The Central Board of Trustee of EPFO has approved amendment in the Linked Insurance Scheme, 1976.
There will be an increase of one lakh rupees
Right now EPF account holders get insurance of six lakh rupees. This amount will increase by one lakh rupees, after which this amount will increase to seven lakh rupees.
When do you get insurance?
If a shareholder dies while working, then his family gets this insurance amount. This proposal will soon be sent to the Ministry of Finance and it will be notified as soon as the green signal is received from the Ministry.
The Central Board of Trustees has recommended the Central Government to keep the same rate of 8.50 percent. This will include 8.15 per cent from the Exchange Traded Fund (ETF-Exchange traded fund) and loan income and the remaining 0.35 per cent capital gain by December 31, 2020.
EPFO losses from ETF investment
Let us tell you that EPFO did not have funds, due to which it was not able to pay the interest to the subscribers. It was reported that the returns of investments being made through exchange traded funds (ETF) for the last five years have come negative for EPFO. Actually, EPFO invests 85 per cent of its annual deposits in debt instruments (eg bonds, debentures, etc.), while the remaining 15 per cent invests equity through ETFs. Equity investment means stock market is generally more risky, but returns are good. This time the equity investment performance was very poor due to Corona crisis.
Source: www.officenewz.com
