Provident Fund Regulatory and Development Authority to introduce 2 new schemes
Posted on: 05/Aug/2016 9:53:01 AM
The Provident Fund Regulatory and Development Authority (PFRDA) is set to start 2 new schemes. One of the 2 schemes would be a plan to invest 75 percent of the EPF Pensions to invest in the stock market.
The Head of PFRDA, Mr. Hemanth Contractor, explained that PFRDA is set to introduce 2 bold and safe schemes for the PF subscribers.
In one scheme, 75 percent of the subscribers` pension fund would be invested in Equity. The age limit for investing in this would also be increased. In another scheme, the EPF pensioners can invest 25 percent in Equity shares.
In the prevailing procedure, the PF subscribers can invest only up to 50 percent in Equity. Now, the proposal is to increase this 75 percent and would be introduced as a new scheme.
A draft proposal has been submitted to the central government. So far, the draft has not yet been approved.
Currently, the government employees can invest 15 percent of their pension in Equity. Private sector employees can invest up to 50 percent of their PF savings.
The central government has been administering the National Pension Scheme (NPS). In the beginning, only the central government employees were allowed to join this scheme. However, army personnel were exempted from this rule. Some state government employees also joined NPS Scheme.
The new PF Pension scheme was expanded to all Indian Citizens on 11th May 2009.
PFRDA has been administering 1.3 Crore PF subscribers, including 44 Lakh government employees. An interest of 11.5 percent compound interest is given to the fund invested in PFRDA. For subscribers who do not belong to public or private sector industries, an interest of 13 percent is given. Government employees get 9.5 percent interest.
