The Hindu Business Line : EPF rate issue to go to PM

The Central Board of Trustees of Employees Provident Fund Organisation (EPFO) on Thursday authorised the Labour Minister and the Chairman of the Board, Mr Oscar Fernandes, to take up the issue with the Prime Minister seeking a bailout package from the Government to retain the interest rate on provident fund at even last year's level.

According to the September 2006 data, the EPFO will have a balance of Rs 17.33 crore, if the interest rate for fiscal 2006-07 is cut to eight per cent from last years 8.5 per cent.

In case it paid 8.25 per cent, the fund would incur a deficit of Rs 218.20 crore and in order to retain last year's rate of 8.5 per cent the deficit would mount to 453.73 crore.

Addressing the CBT meeting, which lasted more than five hours, the Minister appealed to the members to reach a consensus on EPF rate in Thursday's meeting that was postponed last month.

"Although we could not reach a consensus on the issue in the last meeting, I exhort all the respected members to cooperate and help the board reach a consensus so that the interest rate can be declared today to the relief of the subscribers as well as the organisation," Mr Fernandes said.

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