EPFO has sought Finance Ministry’s Intervention in order to fix Rates on its close to 5 Crore subscriber for 2011-2012. The Central Board of Trustees (CBT) of the EPFO, which includes Government, employer and employee representatives, did not succeed at arriving any decision on the rate at its meeting here on Friday. Bone of contention is the difference in rate, The employers suggested 8.5 per cent, and the unions insisted on the present 9.5 per cent for 2011-2012.
Even possibility of how to wisely use approx Rs 15,000 crore lying in inoperative accounts and are yielding returns is also being discussed.
Multiple factors are at play to arrive at consensus on rate, Inflation is one such factor. With elections round the corner in five States, employee’s unions are hopeful of a 9.5 per cent rate of return this year as at this point of time it would be prove disastrous if they ignore such a sensitive issue which affect close to 5 crore people.
This is the first time in history where Finance Ministry would intervene in fixing Rates.