Brushing aside apprehensions, the retirement fund manager EPFO stated on Wednesday that PF trusts set up by corporates can pay a higher interest rate of 9.5 percent for 2010-11 as they may also have a surplus in their accounts.
"The recognised provident funds (PF) would not find any difficulty in paying a 9.5 percent rate of return to its depositors as they follow the same cash accounting system as EPFO," Central Provident Fund Commissioner Samirendra Chatterjee said. "We found a surplus of Rs 1,731.57 crore when we analyzed the accounts on an accrual-based system. Similarly, they (exempted funds) would also find a surplus following the same accounting method," he added.
Earlier on September 15, EPFO's Trustees raised the interest rate on provident fund deposits to 9.5 percent for 2010-11, benefiting nearly 4.71 crore employees of both public and private sectors.
There are over 3,000 recognized provident fund trusts that manage a huge corpus of about Rs 2 lakh crore.
These trusts, which are set up by corporates to manage the provident fund of their employees, are required to pay a rate of return that is not less than the rate paid by EPFO.
As the Central Board of Trustees (CBT), the highest policy-making body of the EPFO, had decided to raise the interest rate by a percentage point to 9.5 percent, the PF trusts will also be required to match the rate of return. AGENCIES
"The recognised provident funds (PF) would not find any difficulty in paying a 9.5 percent rate of return to its depositors as they follow the same cash accounting system as EPFO," Central Provident Fund Commissioner Samirendra Chatterjee said. "We found a surplus of Rs 1,731.57 crore when we analyzed the accounts on an accrual-based system. Similarly, they (exempted funds) would also find a surplus following the same accounting method," he added.
Earlier on September 15, EPFO's Trustees raised the interest rate on provident fund deposits to 9.5 percent for 2010-11, benefiting nearly 4.71 crore employees of both public and private sectors.
There are over 3,000 recognized provident fund trusts that manage a huge corpus of about Rs 2 lakh crore.
These trusts, which are set up by corporates to manage the provident fund of their employees, are required to pay a rate of return that is not less than the rate paid by EPFO.
As the Central Board of Trustees (CBT), the highest policy-making body of the EPFO, had decided to raise the interest rate by a percentage point to 9.5 percent, the PF trusts will also be required to match the rate of return. AGENCIES