Govt should fix minimum rate for EPF / Dec 19, 2005

From Indiapensions

Govt should fix minimum rate for EPF'

Coimbatore: Asking the Centre to fix a minimum rate of interest for employees' provident fund, the All India EPF Staff Federation on Monday said the interest rate of 9.5 per cent should be retained.

Federation President, A D Nagpal, who is also a member of Central Board of Trustees, EPFO, said the Government, instead of losing out huge interest, should evolve a mechanism, by which a separate and minimum rate could be fixed for the corpus delinking it with bank interest rate.

By fixing a rate, in consultation with various unions, a worker would be assured of a minimum interest rate and the Government need not go on revising it every year, he told reporters. |Read more Finance news.|

Asked whether the Prime Minister would agree for maintaining 9.5 per cent interest rate in 2005, Nagpal said as such EPFO would not be able to give more interest rate and the Government should come forward and help it pay for the subscribers.

Nagpal, who is here to participate in the executive committee meeting of Tamil Nadu EPF Staff union, also said that the delay in declaring the rate of interest to subscribers has resulted in duplication of work to the EPFO employees during the settlement.