The higher pension issue is expected to remain at the top of the agenda in the upcoming biannual central board of trustees (CBT) meeting of the Employees’ Provident Fund Organisation (EPFO). A letter from the social security organisation regarding the convening of the 234th CBT meeting was sent to all board members and solicited their presence in the meeting.
The meeting slated for next Tuesday is also expected to witness discussions on the issue regarding the reinvestment of its redemption proceeds from its investments in exchange-traded funds (ETFs), said people seized with the matter.
While the full agenda is not clear, sources familiar with the matter say that the issue of higher pension, which has protracted for a long time now, might come up in the meeting.
“The Supreme Court order on the higher pension has seen many delays and extensions, and the matter is still underway. The thrust in the upcoming meet will be to draw out a strategy and a clear pathway for the smooth implementation of the same, as a number of pensioners are still facing troubles in accessing the pension portal,” said Sougata Roy Choudhury, CII, who represents industry in the central board.
“The exact mathematics of the scheme is still not clear, and the formula for the calculation of the higher pension is still not clear. Moreover, there is no clarity on how the entire scheme is going to be funded. [We] will demand the government come up with better solutions and expedite the process,” said an employee representative who wishes not to be identified.
Besides, the issue of reinvestment of redemption proceeds from its investments in ETFs will also feature in the meeting as the retirement fund body looks to augment its sources of income.
“In the last meeting earlier, the board has given approval to reinvest the redemption proceeds from its investments in ETFs. While the issue is pending with the Finance Ministry, [we] might like to take stock of the development,” the member added.
Apart from other administrative work like presenting the annual report, the discussions will also feature the prospective plan for the enhancement of physical and digital infrastructure of the EPFO, like opening new regional offices and strengthening the digital apparatus, as the existing infrastructure faces capacity constraints, said another employee representative on the board, A.K. Padmanabhan, CITU.
In its last trustee meeting held on March 26–27 earlier this year, among other things, the CBT had fixed the second-lowest interest rate of 8.15 per cent for FY23 in over four decades.
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