The Employees' Provident Fund Organisation (EPFO)'s Central Board of Trustees (CBT) has approved the appointment of four asset managers to manage its debt portfolio for the next five years: SBI Funds Management, HDFC Asset Management, Aditya Birla Sun Life AMC, and UTI Asset Management.

Key Highlights

• CBT selects four fund managers to oversee EPFO’s debt portfolio for the next five years.
• Chosen firms include SBI Funds, HDFC AMC, Aditya Birla Sun Life AMC, UTI AMC, aiming to diversify and strengthen EPFO’s investments.

"This decision marks a significant step towards ensuring prudent management and diversification of EPFO's investment portfolio," stated an official release issued following the October 13 meeting chaired by Labour Minister Mansukh Mandaviya.

The appointments, based on recommendations from the EPFO's Investment Committee, were made after a year-long selection process. According to sources, the Request for Proposal was resubmitted three times due to procedural delays.

As of March 31, 2025, EPFO's corpus was ₹23.25 lakh crore, excluding equity and public accounts. The majority of its investments will continue to be in debt securities, particularly government bonds. Trade unions continue to be cautious about equity exposure through exchange traded funds (ETFs).

EPFO currently allocates 45-65% of fresh inflows to government securities, 20-45% to other debt instruments, 5-15% to equities through ETFs, and up to 5% to short-term debt.

Separately, the Reserve Bank of India's report on improving EPFO's investment strategy was presented at the meeting and will be discussed further. The labour ministry had previously requested RBI assistance in strengthening fund management and increasing returns.

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Trustees discussed increasing the minimum monthly pension under EPS-1995 (currently capped at ₹1,000) and expanding EPFO coverage. The proposals are being reviewed internally to determine their financial impact.

The CBT also approved a simplification of partial withdrawal rules by grouping 13 provisions into three categories: essential needs, housing, and special circumstances. Members will be able to withdraw up to 100% of their eligible provident fund balances.

Additionally, it approved the 'Vishwas Scheme', which aims to reduce litigation. Penalties will be capped at 1% per month, with reduced rates for short-term defaults. The scheme will last six months and can be extended for another six months.