If the proposal is approved by the board, it will generate an expected capital gain of Rs 17,237 crore, which will be credited to the interest account by the pension body for distribution to EPF members as annual interest later this year.
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The organization also plans to seek board approval for EPFO 3.0, a project that is expected to completely revamp the IT infrastructure and related systems. This system is expected to cater to social security benefits for gig and platform workers and will also help handle the higher workload as the EPFO adds more subscribers, either through the Employment Linked Incentive Scheme (ELIS) or under the Code of Social Security 2020, once notified.
The Central Board of Trustees (CBT) of EPFO will meet on Sunday under the chairmanship of Mansukh Mandaviya and is expected to deliberate on 18 agenda items.
The CBT is the highest decision-making body of EPFO and includes representatives of employers, employees, state governments and the central government.
As per the investment pattern notified by the Ministry of Finance, 5 to 15% of the new growth should be allocated to equity and related instruments under category (iv). Since board approval in 2017, EPFO has invested up to 15% of its supplementary funds in ETFs classified under categories iv(c) and iv(d).
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Investments under Category iv (c) are made on a daily basis, while those under Category iv (d) – which replicate the BSE Bharat 22 and NSE Nifty CPSE indices – were made in multiple tranches between 2017 and 2020.
Currently, EPFO manages over 300 million member accounts and has a corpus of nearly Rs 28 lakh crore.
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