27
4
2012
Personal finance
-http://www.fintotal.com Title : EPF rate hiked to 8.6% for 2012-13
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Meta description: EPFO has raised interest rate on EPF to 8.6% for the fiscal 2012-13
Snippet: 27 April 2012 After the Employee Provident Fund rate cut in the last financial year, which was received with vehement protests in March, the union government has announced today that EPF deposits will earn higher at 8.6% this financial year 2012-13. EPF rate was brought down by EPFO from 9.5% in 2010-11 to 8.25% in 2011-12 citing less revenues from the fund. This year, as rates on Special Deposit Schemes (SDS) have been raised to 8.6%, the Central Board of Trustees (CBT) of the fund, which is the PF rate administering board, believed it was possible to raise EPF rate. A bulk of EPF deposits – over Rs 55,000 crore – is parked with SDS. SDS was launched in 1975 to provide better risk free returns to non-government provident funds, gratuity funds and superannuation. The EPFO considers the SDS a safe haven for its funds since they are relatively safe guarded. Union labour minister Mallikarjun Kharge made the announcement in Rajya Sabha about today's rate hike. This is set to benefit over 5 crore subscribers of EPF, among whom are retirees, who at least in part depend on returns from EPF.
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