New Delhi, Aug 19: The central board of trustees of Employees Provident Fund Organisation today approved a scheme allowing the subscribers to withdraw upto 90 per cent of the accruals to invest in varishta pension bima yojana, rolled out by Prime Minister Atal Bihari Vajpayee. "The proposal to permit withdrawal of upto 90 per cent of the amount standing at a member's (completed 55 years) EPF credit to be transferred to the LIC for investment in varishta pension bima yojana, is approved," Bharatiya Mazdoor Sangh president Hasubhai Dave told newspersons after the meeting.

LIC's varistha pension bima yojna offers an attractive 9.0 per cent return to senior citizens above 55 years of age.
The LIC scheme could be bought for a minimum Rs 33,335 for getting a monthly pension of Rs 250 while the maximum investment can be upto Rs 2,77,490 for getting a pension of Rs 2,000 a month.

The scheme provides for pension during the life time of the pensioner. In the event of death, the purchase price will be returned to the nominee of the pensioner.


The government will subsidise LIC annually for the difference between the actual yield on its investment and the assured return of 9.0 per cent, it added.
With this approval, separate administrative arrangements would be in place in consultation with LIC for enabling direct transfers to the insurance monolith at a minimal transaction cost, EPFO sources said.

The move to allow this was to check "frittering away" of lumpsum amount taken from the EPFO after the retirement, they added.


Bureau Report