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
From India, Mumbai
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24"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
From India, Mumbai
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