Date:26/04/2007 URL: http://www.thehindu.com/2007/04/26/stories/2007042603141300.htm

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``Decision on EPF interest next month''

Special Correspondent

Those who have retired or are soon to retire will get 8.5 per cent interest

CBT is at the `final stage' of taking a decision

Group insurance for unorganised sector under study

NEW DELHI : The Central Board of Trustees (CBT) of the Employees Provident Fund (EPF) would meet here next month to finalise the rate of interest for 2006-07 and 2007-08, Minister of State for Labour (independent charge) Oscar Fernandes told reporters here on Wednesday.

Mr. Fernandes said the CBT would meet in the first or the second week of May. ``We have had extensive dialogues [with stakeholders] and are at the final stage of taking a decision.''

He was replying to questions at a press conference organised to announce the schedule for the 41st session of the Indian Labour Conference.

Asked whether there was a move to bring down the interest rate, Mr. Fernandes said the Act provided for giving the subscribers what the investments brought as returns.

``We have seen an increase in the interest rates and any benefit that accrues will be passed on to the subscribers.''

Mr. Fernandes clarified that until a final announcement was made, those who had retired or were soon to retire would be given 8.5 per cent interest.

They would not be asked to return the money if interest rates fell. Only people in service would be affected in such a situation, he explained.

The two-day Indian Labour Conference (ILC) beginning on April 27 will be inaugurated by Prime Minister Mamohan Singh.