The government is considering converting the Employees’ Provident Fund Organisation (EPFO) into a fund manager for investments of all social security corpus under the mega recast being planned to deliver universal social security for 50 crore workers in the country. Under the plan, executive functions of the EPFO would be moved to state social security boards. EPFO will essentially be a fund manager that would declare annual interest rate on provident fund deposits based on the returns on its investments.
The idea is to reap the benefits of EPFO’s several decades of experience in managing the corpus of its six crore subscribers.
“Going forward, the roles will change. While EPFO will become the central board for managing the corpus of of its six crore subscribers.
“Going forward, the roles will change. While EPFO will become the central board for managing the corpus of social security funds of all states, the latter will be a one point contact for collection and disbursal of social security,” a senior government official told ET detailing the plan. This would, however, require significant change in EPFO’s current organisational structure as it will have to hire professional investment managers for the organisation. Currently, five fund managers SBINSE 1.24 %, ICICINSE 2.93 % Securities Primary Dealership, Reliance CapitalNSE 0.89 %, HSBC AMC and UTI AMC manage the corpus while EPFO focuses entirely on the social security fund collection and disbursement. Read Original Post >>