Private provident fund trusts have enough surplus to be able to pay over 9.5 per cent interest on PF deposits, says an analysis by the Employees’ Provident Fund Organisation’s (EPFO). Some of the private PF trusts have sufficient funds to pay interest of up to 11.5 per cent on the retirement funds of their employees, the analysis said.
The EPFO sought details of the private funds after they expressed difficulty in paying the higher interest of 9.5 per cent on PF deposits for 2010-11.
The private funds have argued that EPFO could pay 9.5 per cent interest because it had a surplus of Rs 1,731 crore in its interest suspense account, but they could not do so in absence of any such surplus.
The PF trusts are required to mandatorily match the interest rate on provident fund provided by EPFO.