M A I N   N E W S

EPFO may cut interest rate to 8.25%

New Delhi, December 22
The advisory panel of Employees' Provident Fund Organisation (EPFO) has recommended a lower rate of interest of 8.25 per cent for the current fiscal compared to 9.5 per cent last year, a move that will affect over 4.7 crore subscribers.

The unions’ representative on EPFO’s advisory body, Finance and Investment Committee (FIC), has demanded maintaining the rate of interest at 9.5 per cent for 2011-12.

“FIC opined that payment of 8.25 per cent rate of return to its 4.7 crore subscribers during this fiscal is feasible,” a source privy to the development said after a meeting today. "The unionists present in the meeting demanded maintaining 9.5 per cent rate of return as given in 2010-11 and pointed out inaccuracies in income projection for this fiscal by EPFO officials," the source added.

Now FIC's recommendations would be tabled before the Employees' Provident Fund Organisation's (EPFO) apex decision making body, the Central Board of Trustees' (CBT), headed 
by the Labour Minister for taking a final call on the issue in its meeting scheduled tomorrow.

The source said the employees' representatives in the FIC meeting sought clarification about the income estimation error which was Rs 458.73 crore. — PTI