EPFO to consider housing scheme for members next month

Labour Minister Bandaru Dattatreya had earlier said govt exploring possibility for providing a suitable low-cost housing scheme for subscribers of EPF

Retirement fund body EPFO is working on a proposal to provide low cost housing to its over 50-million subscribers.

“The EPFO is working on the proposal to provide low cost housing to its subscribers, which will come up for discussion in the meeting of its trustees expected sometime next month,” a source said.

Earlier this month, Labour Minister Bandaru Dattatreya had said in the Lok Sabha that the government is exploring the possibility for providing a suitable low-cost housing scheme for subscribers of Employees’ Pension Fund.

He was replying to a question whether the government or the EPFO has introduced/proposes to introduce a scheme to allow its subscribers to pledge their future PF contribution to buy low-cost houses.

Last year, the proposal was also on the agenda of EPFO’s trustees meeting held on September 16.

A report of an expert committee on housing facility for the subscribers was also presented to the trustees for their perusal.

The committee had unanimously recommended a scheme to facilitate subscribers to buy houses where they will get an advance from their PF accumulation and will be allowed to pledge their future PF contribution as EMI (Equated Monthly Instalment) payment.

Under the proposed scheme, there will be a tripartite agreement with member, bank/housing agency and EPFO for pledging future PF contributions as EMI payment.

The panel had suggested that the subscribers will purchase a dwelling unit with loans from bank or housing finance companies and hypothecation of property in favour of the latter.

However, the panel had suggested this scheme for those EPFO subscribers who are low income formal workers and could not buy a house during their entire service period.