EPFO likely to fix PF rate at 8.5% today

EPFO’s trustees are likely to decide on Monday the payment of 8.5 per cent interest to its over five crore subscribers on their provident fund (PF) deposits for 2012-13, higher than 8.25 per cent provided in the previous financial year.

... 8.5 per cent rate of interest for the year 2012-13 is feasible, said a note prepared by the Employees’ Provident Fund Organisation (EPFO), which was considered by its advisory body finance and investment committee (FIC) on February 15.

According to 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 financial year would leave a surplus of Rs 4.13 crore.

EPFO apex decision making by the central board of trustees (CBT) is scheduled on meet on Monday where they may take up the issue of interest rate payment for the current financial year, a source said.

In FIC meeting held on February 15, union leaders refused to discuss the issue regarding payment of interest in the current financial year because the agenda note for the issue was not provided well in advance to them, sources said adding the note was tabled during the meeting.

They said EPFO’s estimates would now be directly tabled before CBT meeting scheduled on February 25, for final approval.

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