The EPFO’s board discussed the rate of interest for 2012-13. After detailed discussion, the board decided to recommend a rate of interest of 8.5% for the year 2012-2013. Decision to pay 8.5% interest rate was taken unanimously by the board.
The trustees also decided that EPFO will give a permanent account number to all members so that it is not changed with change in job or location. The EPFO is ready with an action plan to set up a central database for the purpose.
The CBT, has also decided to adopt the pattern of investment of 2008 as issued by the Finance Ministry except that no investments shall be made in equity.
Under, 2008 investment pattern norms, the Employees’ Provident Fund Organisation (EPFO) will have greater flexibility to park its surplus funds in long-term debt instruments and certificate of deposits of PSU banks.
Over five crore EPFO subscribers would get 8.5 per cent interest for their deposits for 2012-13, higher than 8.25 per cent disbursed in the previous financial year.
According to the EPFO’s estimates, payment of 8.5 per cent interest rate on PF deposits for the ongoing fiscal would leave a surplus of Rs 4.13 crore.