government and corporate bonds since 2009. EPFO’s legacy investment, especially in SDS and government bonds, caps its weighted average interest income at around 8.5-8.7%.
Fernandes has also proposed a new scheme that will enable EPFO subscribers to park 10% of their salary in the employees pension scheme, which will be used to finance a housing unit that will be provided to them after retirement. Though the scheme was not part of CBT agenda, Jalan said it would be taken up by the EPFO in due course.
Among other EPFO initiatives, Jalan said the CBT has approved a 20% hike in the benefits from employees deposit-linked insurance scheme. This will increase the maximum insurance benefit from R1.3 lakh to R1.56 lakh to the nominees in case of a subscriber’s death.
The EPFO is also in the process of appointing a consultant who will help in reappointing fund managers and tracking their performance as the present adviser Crisil's tenure is to end soon.