Declaration of rate of interest on EPF interest for the year 2010-11

No.R-11018/1/2010.SS-II
Government of India
Ministry of Labour & Employment

************

Shram Shakti Bhawan, Rafi Marg,
New Delhi, dated the 17th March, 2011.

To

The Central Provident Fund Commissioner,
Employees Provident Fund Organisation,
Bhavishya Nidhi Bhawan,
Bhikaiji Cama Place,
New Delhi

Subject:- Declaration of rate of interest on EPF interest for the year 2010-11.

Sir,

The undersigned is directed to refer to CPFC’s U0 Note No.Invst.l/3(2)/133/1011/ROI/205 dated 13-10-2010 on the subject mentioned above and to convey the approval of the Central Government under para 60(1) of the Employees’ Provident Funds Scheme, 1952 to crediting of interest @ 9.5% for the year 2010-11 to the account of each member of the Scheme on the condition that the 4.72 crore Member accounts should be updated within a period of six months and if any shortfall in Interest Suspense Account is noticed, then the same should be adjusted in the interest rate to be fixed for the next year (2011-12).

2. You are, therefore, requested to take necessary action accordingly under intimation to the Ministry.

Yours faithfully,
(S.D. Xavier)
Under Secretary to Govt. of India

source-www.epfindia.com

Govt approves 9.5% interest on PF deposits for 2010-11

 

The finance ministry on Thursday approved higher interest rate of 9.5 per cent to over 4.7 crore depositors with the Employees Provident Fund Organisation (EPFO) for 2010-11.

The EPFO had been paying 8.5 per cent interest on PF deposits since 2005-06.

In September last year, it had recommended an increase in interest rate to 9.5 per cent for 2010-11 after discovering Rs 1,731 crore surplus in their books of accounts.

"The finance ministry has ratified 9.5 per cent rate of return on PF deposits for 2010-11. We have received a notification in this regard," Central Provident Fund Commissioner Samirendra Chatterjee told the news agency.

Chatterjee further added that "our calculations regarding Rs 1,731 crore surplus in the interest suspense account were found correct by the finance ministry and so they approved this higher rate of return".

The finance ministry's approval is subject to the condition that any shortfall on account of payment of 9.5 per cent rate of return would be met by making adjustments in the interest rate in 2011-12.

Chatterjee, however, said that there would be no need for making any adjustment in the next fiscal as "EPFO calculations are correct regarding the discovery of a surplus of Rs 1,731 crore in the interest suspense account."

The finance ministry has also asked the EPFO to update its subscriber accounts within the next six months.

EPFO's apex decision making body-the Central Board of Trustees (CBT)- in September last year had decided to provide 9.5 rate of return on retirement savings in 2010-11 after it found a surplus of Rs 1,731 crore.

Refusing to ratify the said rate of return, the finance ministry had earlier argued that the surplus shown by the ministry was not real after CAG report has called the EPFOs so called surplus unverifiable.

According to sources, the finance ministry approved 9.5 per cent interest after the intervention by Finance Minister Pranab Mukherjee.

SOURCE -DDNEWS