Unreal rate

EPFO financing of high payouts can't remain opaque

The Union finance ministry and the labour and employment ministry are at loggerheads yet again on matters related to the finances of the Employees’ Provident Fund Organisation (EPFO). The EPFO is one of the world’s largest social security organisations, having over 170 million accounts and over 60 million active members. In February this year, the EPFO’s apex decision-making body — its Central Board of Trustees — decided that for 2018-19, the EPFO would raise the interest rate to 8.65 per cent — up from 8.55 per cent in 2017-18. This is higher than the returns of other pension products such