EPFO trustees may decide interest on PF deposits on Jan 15

Dec 20 2012, 14:45 IST
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Prior to 2010-11, EPFO had maintained an interest rate of 8.5% for five consecutive years since 2004-05.  (Reuters) Prior to 2010-11, EPFO had maintained an interest rate of 8.5% for five consecutive years since 2004-05. (Reuters)
SummaryPrior to 2010-11, EPFO had maintained an interest rate of 8.5% for five consecutive years since 2004-05.

Retirement fund body EPFO's apex decision making body Central Board of Trustees (CBT) is likely to decide rate of interest on PF deposits for 2012-13 in its meeting scheduled on January 15.

"Employees' Provident Fund Organisation's (EPFO) trustee may consider the proposal for deciding the rate of interest on PF deposits in its meeting on January 15," a source said.

EPFO has also issued a notice that the 201st meeting of the Central Board of Trustees (EPF) has been scheduled to be held on January 15 (Tuesday), 2013 in Mumbai.

As per the practise after the CBT, headed by the Labour Minister, decides the rate of interest for a fiscal, it is sent to the Finance Ministry for concurrence.

According to the sources, the preliminary estimates of EPFO indicate that the body would neither have surplus nor have deficit if it pays 8.6 per cent rate of interest to its over 50 million subscribers.

However, the unionists are demanding to keep the interest rate at par or above 8.8 per cent provided to the subscribers of Public Provident Fund, which is voluntary scheme.

The unionist have also been demanding raising the interest rate to 9.5 per cent provided by the body in 2010-11. EPFO had slashed the rate of interest by 1.25 per cent to 8.25 per cent for 2010-11.

Prior to 2010-11, EPFO had maintained an interest rate of 8.5 per cent for five consecutive years since 2004-05.

"We will demand interest rate of 9.5 per cent for this fiscal in the trustees meet. It should commensurate the prevailing bank deposits rate ranging from 9 to 10 per cent," Hind Mazdoor Sabha Secretary A D Nagpal who is also an EPFO trustee said.

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