EPFO likely to pay 8.5% interest for 2012-13

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 here today, 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.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • For those who are left to survive a war-torn world, let there be peace

    The hunger games have begun, and they have started reaping our children. There is no way around it.

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Urs Schöttli

Shifting sands in the Far East

As was to be expected, Japanese prime minister Shinzo Abe ...

Zehra Naqvi

When humanity died, bestiality prevailed

The terrorist attack that killed 132 children in Peshawar has ...

Bubbles Sabharwal

Why self-esteem must be your best friend forever

Two negatives do make a positive! Imagine no doubts, no ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture