Delhi: The Employees Provident Fund Organisation (EPFO)
has decided to allow provident fund subscribers above
the age of 55 to withdraw up to 90 per cent of the accruals
for investment in the Varishta Pension Bima Yojana run
by the Life Insurance Corporation of India (LIC).
decision to this effect was taken by the Central Board
of Trustees of the EPFO, which met here yesterday.
move will call for amendment in the EPFO Act which will
be taken up soon," say government sources. "The
objective of the entire exercise is to ensure that senior
citizens take the maximum advantage by investing in both
the schemes simultaneously. On one hand, the subscriber
gets all the advantages of what he is entitled to under
the EPF Act as well as on the other, reaps the benefits
of the Varistha Pension scheme."
Varistha Pension Bima Yojana offers a 9-per cent return
to subscribers above the age of 55 years. The minimum
investment required to participate in the scheme is Rs
33,335 while the maximum amount one can invest is Rs 2,77,490.
pension scheme will yield an annual return of 9 per cent
for which the central government will subsidise LIC annually
for the difference between the actual yield on its investment
and the assured
return of 9 per cent, the officials add. "After the
necessary amendments in the EPFO Act separate administrative
arrangements will be put in for direct transfer of funds
to the LIC."