EPF board defers decision on interest rates

New Delhi, Dec 7 (UNI) The Central Board of Trustees of Employees Provident Fund (EPF) today failed to take any decision on interest rate to be given to its over four crore members for the current fiscal.

The board, which met here today, asked Labour Minister Oscar Fernandes, who is its ex-officio Chairman, to discussthe issue of fixation of interest rate at 9.5 per cent with Prime Minister Manmohan Singh , a source present at the meeting told UNI.

No recommendations have been made to the government, he added.

There was a general feeling at the meeting that the social security fund has social and financial repercussions and the government cannot leave its over four lakh members without proper returns on their deposits.

No date has been fixed for the next meeting. ''It depends to the outcome of the minister's talks with the Prime Minister,'' the source said.

Affiliates of the the Left parties in the meeting had demanded 9.5 per cent interest rate. Representatives including those from employers' side, central and state governments expressed the need for interest rate to be in proportion to the returns from the EPF fund.

Centre of Indian Trade Unions (CITU) representatives Mr Vardhrajan said the Prime Minister had promised in 2004 not to reduce the EPF rate below what was given by the previous NDA regime - 9.5 per cent.

Titagarh Industries Chairman J P Chaudhary said the majority view is that interest rate could not be given beyond what is earned by the fund.

The government had notified 8.5 per cent interest rate for 2005-06 and trade union leaders feel that the government is toying with the idea of reducing it to eight per cent as the present rate will leave a deficit of Rs 365.89 crore.

The board at its last meeting, held on November 7, had put off a decision on fixing interest rate for 2006-07, as it had not calculated the surplus funds available.

UNI PKS RP RS1913