For the period of 2012-13 all the employees about 5 crore got the interest of about 8.5% over the money of their deposits that is .25% higher as it was given in the previous accounting year.
CBT that is the central board of trustees is the apex body of EPFO that takes the important decisions. It has been told to the media by Mallikarjun Kharge the Labour Minister that the rate of interest for the period of 2012-13 has been finalized in the board meeting and the rate that they have decided is 8.5% for this financial year.
This decision of paying 8.5% of interest has been taken by the board unanimously as told by the minister. This decision is also being represented by the employers and the trade unions.
It has further been decided by the trustees that the permanent account number will be provided to all the members by EPFO so that by the change of the location or the job the account number do not change. There is an action plan that is ready with the EPFO for setting up the central database for this purpose.
According to the Labor minister Kharge if this system is implemented, it is sure that seamless and the real time services can be provided by the EPFO to all of its members and leads to the elimination of number of settlements of the claims.
The Central board of trustees and the minister also decided the investment pattern of 2008 is to be adopted that have been issued by the ministry of Finance and the investments to the equity are to be disallowed.
As per the norms of the investment pattern of 2008 EPFO have much more flexibility to utilize its additional funds for the instruments of long term debts and the deposit certificates of the banks of PSU.
The decision for the payment of the interest of 8.5% has been taken for the PF amount. But according to the view of the secretary of AITUC (All India Trade Union Congress) Mr. DL Sachdev after the meeting of CBT expressed the reservation of much higher interests.
As per the estimate of EPFO near about Rs.4013 crore may be available as surplus by the payment of 8.5% interest on the PF deposits in this financial year.