FINANCE AND INVESTMENT SUB-COMMITTEE
OF THE CENTRAL BOARD OF TRUSTEES TO LOOK INTO THE INVESTMENT OF
THE CORPUS OF PROVIDENT FUNDS IN THE BEST POSSIBLE MANNER AND
ALSO TO RECOMMEND THE RATE OF INVESTMENT FOR THE YEAR 2003-04
THE
160TH MEETING OF THE CENTRAL BOARD OF TRUSTEES DELIBERATED
IMPORTANT AGENDA POINTS LIKE HOUSING SCHEME, AMNESTY SCHEME AND
BUDGET ESTIMATES ETC.
The Labour Minister
Shri Sahib Singh Verma announced in a press conference today that
we are committed to invest our provident funds in the best possible
manner and whatever returns we will have, we are duty bound to
pass on the same to the workers like a trustee. He said finance
and investment sub-committee of the central board of trustees
will look into the investment of the corpus of provident funds
in the best possible manner and also to recommend the rate of
interest for the year 2003-04. He was speaking to the press after
the 160th meeting of the Central Board of Trustees
(EPF) held today. In this meeting, several important issues like
new pattern of investment notified by Ministry of Finance, rate
of interest on EPF for the year 2003-04, setting up of national
registry and processing centre for EPFO at Dwarka, Budget estimates
for 2003-04, unemployment insurance scheme, amnesty scheme and
housing scheme was discussed in a amicable manner and the proposals
of the agenda items were passed. This was the first meeting of
the EPF after reconstitution of the CBT, Employees' Provident
Fund.
Government of
India, Department of Economic Affairs has notified the pattern
of investment to be followed by non-government provident funds
w.e.f 1st April, 2003. Under this pattern Central Government
securities, mutual funds etc. will attract 25% of the funds whereas
government securities will attract 15% funds and bonds and securities
of public financial institutions will attract 30% of the funds.
The rest residual category (one of the three categories mentioned
above) will attract 30% of the funds. Based on the above guidelines,
the Labour Ministry will decide the actual placement of funds
for the next Financial Year for which Finance and Investment Sub-Committee
to be constituted. The committee is to give its report by the
end of April and thereafter a meeting of Central Board of Trustees
will be convened for recommending the rates on provident funds
to be notified by the Government, i.e. Ministry of Labour.
The Labour Minister
also briefed that the CBT has also unanimously applauded and approved
the housing scheme for EPF members. There are now over 30 million
employees covered under the Employees' Provident Fund. This housing
scheme for EPF beneficiaries will add a new dimension to social
security protection to workers.
The EPFO has
embarked upon a comprehensive moderanisation plan to strategically
reposition the Employees' Provident Fund as a frontline provider
of provident fund, pension and other old age income security products
meeting world-class standards of quality, timeliness and efficiency.
In order to reduce the claims settlement time from 30 days to
2-3 days, a nation-wide unique social security number for each
worker has been launched, on the Golden Jubilee Celebrations of
EPFO. For this purpose CBT has approved setting up of national
registry and processing centre at Dwarka at the total cost of
Rs. 26 crores. The RITES has been entrusted to undertake this
job on a 10 acre land at Dwarka. This job will commence within
3 months.
Dr. Sahib Singh
also informed that an amnesty scheme for realization of Rs. 2200
crores trapped due to litigation has been approved by CBT. The
Minister also informed that the Provident Fund Act will be amended
and those litigants (Employers/Owners) numbering approximately
one lakh who will opt for it, will get waiver of penalty and prosecution
on deposit of interest and contribution. This will help not only
the realization of due provident funds but also reduce unwanted
litigation, which will in turn reduce operating costs.
The CBT also
approved the consolidation of the marginal balances contained
in individual accounts of less than Rs.100 to the tune of Rs.
3-4 crores to convert it into some sort of reserve funds. This
fund will contribute towards social security to the workers and
will also relieve the EPFO of unnecessary expenses in maintaining
these accounts.
The CBT also
approved evaluation through a committee of an unemployment insurance
scheme on the pattern of a scheme in Austria which will give unemployment
benefits to the worker for 2-3 years even after he looses his
job. The CBT also approved that a souvenir on the occasion of
golden jubilee celebrations of EPFO be given to all employees
of EPFO. This will incur an approximate cost of Rs. 9 crores.
