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27/10/2010

EMPLOYEES PROVIDENT FUND ORGANIZATION (EPFO) decides to stick to debt, won’t invest in equity

EMPLOYEES PROVIDENT FUND ORGANIZATION (EPFO) decides to stick to debt, won’t invest in equity

The provident fund deducted from one’s salary every month can give higher returns if fund managers invested the corpus in equity, many employees would argue.

But the Central Board of Trustees of the Employees Provident Fund Organization (EPFO) finds the capital markets too risky to invest in.

“We have decided not to invest in capital markets,” Samirendra Chatterjee, the central provident fund commissioner, said at a seminar in Mumbai.

The EPFO will continue to invest in state development loans, bonds of AAA-rated companies and PSUs, he said.

Chatterjee emphasized that taking risks for higher returns was not a viable option for the EPFO.

“We get around 20,000 settlement applications every day… For us return of capital is more important than return on capital,” he said.

“If they (the finance ministry, which has been seeking that the EPFO invest as much as 15% of its funds in the stock market) want us to invest, please give us a guarantee for the same, we will invest,” he added.

Recently, the payout rate on provident fund was revised to 9.5% for the current financial year, up from 8.5% in the last five years.

“None of the recognized provident funds has approached us so far with a complaint that they cannot manage 9.5% rate of return for this fiscal,” said Chatterjee.

In fact, a survey has found that more than 300 exempted funds have enough surplus, which can be used to declare extra dividend this year, he said. “However, it cannot be used to make good any bad investment by the fund manager.”

Chatterjee clarified that the entire 9.5% return on provident fund will be tax-free. “We had a talk with the ministry and will get the notification soon,” he said.

But this increased rate of return is only applicable for the current financial year. Next year, unless a new interest rate is announced, the default interest rate will be 8.5%.

There are two types of provident funds exempted funds, which are managed in-house and un-exempted, which are managed by the EPFO. Funds under the management of the EPFO have reached Rs3.25 lakh crore currently from Rs3 lakh crore in March, 2010.

Source: Daily News & Analysis

Posted by Running Staff Solapur at 10/27/2010 08:45:00 pm Labels: ,

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PME Due Date

Master Circular No. 25



Copy of Railway Board’s letter No. 69/H/3/11 dated 06.12.1974



Subject: Implementation of the Recommendations of the Visual Sub-Committee.



6. Periodical re-examination of serving Railway Employees:



6.l. In order to ensure the continued ability of Railway employees in Classes A l, A 2, A 3, B l and B 2 to discharge their duties with safety, they will be required to appear for re-examination at the following stated intervals throughout their service as indicated below:



6.1.1. Classes A l, A 2 and A 3 —At the termination of every period of three years, calculated from the date of appointment until they attain the age of 45 years, and thereafter annually until the conclusion of their service.



Note: (l) The staff in categories A l, A 2 and A 3 should be sent for special medical examination in the interest of safety under the following circumstances unless they have been under the treatment of a Railway Medical Officer.



(a) Having undergone any treatment or operation for eye trouble irrespective of the duration of sickness.



(b) Absence from duty for a period in excess of 90 days.



(2) If any employee in medical category A has been periodically medically examined at any time within one year prior to his attaining the age of 45, his next medical examination should be held one year from the due date of the last medical examination and subsequent medical examination annually thereafter.



If, however, such an employee has been medically examined, at any time earlier, than one year prior to his attaining the age of 45, his next medical examination should be held on the date he attains the age of 45 and subsequent medical examination annually thereafter.



Ammendment: It was ammended in 1993 as below



Age Group PME Due



Age 00-45 every 4yrs



Age 45-55 every 2yrs



Age 55-60 every year
Details:-
As per Rly Bd's Guideline of Medical Exam issued vide LNo. 88/H/5/12 dated 24-01-1993

a) PME would be done at the termination of every period of 4 years from date of appointment / Initial medical Exam till the date of attainment of age of 45 years, every 2 years upto 55 years & there after annual till retirement.
b) Employees who has been periodically examined at any time within 2years prior to his attaining the age of 45years would be examined after 2years from the date of last PME & subsequent PME for every 2years upto 55years age.Of

NRMU 4 you
SMLokhande





6.1.2. Classes B-1 and B-2—On attaining the age of 45 years, and thereafter at the termination of every period of five years.