With half the financial year over, the
country’s largest retirement fund manager is yet to announce the interest rate
on provident fund contributions by its five crore members for the year 2012-13.
The
Employees’ Provident Fund Organisation, which manages a corpus of over Rs 3.5
lakh crore, has been hoping to give an interest of about 8.6 per cent on
contributions during the fiscal year 2012-13.
However,
the organisation is yet to even start calculations to zero in on the interest
rate on the savings in the provident fund account.
“We
are yet to start the exercise. It could take another month at least. The issue
will be taken up in the next meeting of the Central Board of Trustees,” said an
official.
This
effectively means that members who withdraw their provident fund savings will
earn the interest rate notified for last fiscal, when it was kept at 8.25 per
cent.
Employee
provident fund rates were reduced from 9.5 per cent in 2010-11 to 8.25 per cent
during the last financial year.
“Interest
rates should be ideally announced before the start of a financial year so that
members can take informed investment decisions. It should not be endlessly
deferred,” said AD Nagpal, Hind Mazdoor Sabha Secretary and member of the CBT.
The
decision regarding the interest rate is taken by the EPFO’s Central Board of
Trustees headed by the labour minister.
The
Central Board of Trustees has met twice during the current financial year but
has failed to come up with a final decision on the interest rate.
No
providence
*
The Employees’ Provident Fund Organisation has been hoping to give an interest
of about 8.6% on contributions.
*
With the announcement pending, members who withdraw their PF will earn 8.25%,
the interest rate for last fiscal.
*
Employee provident fund rates were reduced from 9.5% in 2010-11 to 8.25% during
the last fiscal year.
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