EPF overrules privately managed EPFs on interest issue
31 Mar 2011
The Central Board of Trustees of the Employees' Provident Fund Organisation, which met yesterday struck down the objections from privately-managed EPF trusts and decided to go ahead with its decision of 9.5 interests on all EPF accounts for this fiscal.
Though some members did raise the issue which was not included under the agenda, the EPF quickly confirmed that the higher rate had to be paid.
A number of industry bodies such as Employers Federation of India objecting to the rate said the EPF calculation was based on Rs1,731 crore interest account realisation, which the company-run EPF trusts did not have.
According to Sharad Patil, secretary general, Employers' Federation of India, though federation put its argument to the CBT it was fixed on its decision.
The board however, ruled out extension of tenure of existing fund managers by another three months - till June, which was under consideration as the process of selection of new fund managers was yet to be completed.
The board decided to entrust the fund to SBI till the selection of new fund managers. (See: SBI now in sole charge of EPFO funds as private managers axed)
