EPFO likely to pay 8.5% interest for 2012-13

Over five crore subscribers of the retirement fund body EPFO are likely to get

RELATED ARTICLES

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E-mail ID will not be published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

  • Tighter disclosure norms will help public shareholders

    The Securities and Exchange Board of India (Sebi) has proposed changes in listing agreements between companies and stock exchanges, laying down manage

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

Arun Nigavekar

Why UGC must focus on quality

In a vast country like India, where there are pressures ...

Rajgopal Nidamboor

The sum total of our conscious experience

All of us epitomise a multiplicity of conscious thoughts. This ...

Gautam Gupta

Don’t let success kill the essence of the concept

In 1999 when my mother started her own label, we ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture