Managing expectations

EPFO subscribers should be prepared for lower returns

The Employees’ Provident Fund Organisation (EPFO) for the first time has decided to credit interest — at the rate of 8.5 per cent — in a staggered manner, because the pandemic has affected its income. It would credit 8.15 per cent interest in the accounts of subscribers for the financial year 2019-20 now and the balance 0.35 per cent will be released by December if the retirement fund manager is able to sell its equity investment. Its income would fall short by about Rs 2,500 crore if it credits the entire 8.5 per cent interest in one go. In case