New Delhi: Retirement fund body EPFO may announce 9% interest rate on PF deposits for 2015-16 in its trustees’ meet on 16 February, higher than 8.75 % provided in previous two financial years.
“The 211th meeting of the Central Board of Trustees (CBT) has been scheduled to be held on 16 February 2016 in Chennai,” an EPFO circular stated.
According to the circular, the issues to be placed for consideration of the CBT include rate of interest to be credited to EPFO members’ account for the year 2015-16, cadre restructuring of the body and annual accounts in respect of EPF Scheme 1952, EPS 1995 and EDLI Scheme 1976 for the year 2014-15.
Earlier, the Employees’ Provident Fund Organisation’s (EPFO) advisory body had recommended 8.95% rate of interest for the current fiscal which is higher than 8.75% provided in 2013-14 and 2015-16.
According to EPFO income projections worked out in September, providing 9% interest on PF will result in a deficit of Rs100 crore.
“We are expecting that there will be a surplus of Rs100 crore on providing 9% rate of interest on PF deposits when EPFO will work out the latest estimates. FAIC can change its recommendation in the next meeting and suggest 9% interest rate for 2015-16,” a CBT and FAIC member P.J. Banasure had told PTI earlier.
The proposal has to be endorsed by the Central Board of Trustees (CBT) before the finance ministry notifies it. However, there has been indications from the finance ministry that it will slash interest rate on small savings like public provident fund in view of the rate cut by Reserve Bank of India.
The EPFO provides rate of interest from the earning on investments of formal sector workers’ funds without any assistance from the government.
Thus, the workers’ representative are of the view that if there is no deficit on providing 9% rate of interest for the current fiscal, then government should not have any issue with it.