EPFO likely to pay 8.5 pc interest for 2012-13
According to the EPFO's estimates, 8.5 per cent rate of return on PF deposits for current fiscal would leave a surplus of Rs 4.13 crore.
New Delhi: Over five crore subscribers of the retirement fund body EPFO are likely to get 8.5 per cent return on their investment during 2012-13, higher than 8.25 per cent paid in the previous fiscal. "... 8.5 per cent rate of interest for the year 2012-13 is feasible", said a note prepared by the Employees' Provident Fund Organisation for the consideration by its advisory body Finance and Investment Committee (FIC).
According to the EPFO's estimates, payment of 8.6 per cent interest rate would result in a deficit of Rs 240.49 crore whereas 8.5 per cent rate of return on PF deposits for current fiscal would leave a surplus of Rs 4.13 crore.
EPFO had paid 8.25 per cent rate of interest to its subscribers for 2011-12, lower than the 9.5 per cent disbursed in the previous fiscal. According to sources, in the meeting of the FIC held in the capital on Friday, union leaders refused to discuss the issue regarding payment of interest in the current fiscal because the agenda note for issue was not provided well in advance to them. The note was tabled during the meeting.
He further said that now the EPFO's estimates would be directly tabled before the body's apex decision making panel the Central Board of Trustees' (CBT) meeting scheduled on February 25, for final approval.
The notification on interest rate is issued by the government after concurrence with the Finance Ministry. Although EPFO announces interest rate at the beginning of the year, there has been a delay this time. Trade unions have been pressing for an early meeting of the CBT to decide on the interest rate for the current fiscal.