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EPFO trustees to meet on Feb 15,may decide on PF interest rate

Jan 02 2013, 21:30 IST
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SummaryThe meeting of retirement fund body EPFO's apex decision making body Central Board of Trustees' (CBT) where trustees may fix rate of interest on PF deposits for 2012-13, has been postponed to February 15.

The meeting of retirement fund body EPFO's apex decision making body Central Board of Trustees' (CBT) where trustees may fix rate of interest on PF deposits for 2012-13, has been postponed to February 15.

"The meeting was scheduled on January 15 at Mumbai. But some members expressed reservations to attend meeting on that day and subsequently it was scheduled on February 15 at New Delhi", a source said.

He further revealed that the Employees' Provident Fund Organisation's (EPFO) trustee may consider the proposal for deciding the rate of interest on PF deposits in that meeting.

Earlier, EPFO had issued a notice stating the 201st meeting of CBT is scheduled to be held on January 15 (Tuesday), 2013 in Mumbai.

As per the practice 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 keeping the interest rate at par or above 8.8 per cent provided to the subscribers of Public Provident Fund, which is voluntary scheme.

The union leaders have also been demanding raising the interest rate to 9.5 per cent provided by the body in 2010-11 for this fiscal. EPFO had slashed the rate of interest by 1.25 per cent to 8.25 per cent for 2011-12.

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

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