April 02, 2002

    A special meeting of the Central Board of Trustees of the Employees Provident Fund would be held on April 12, 2002 to review the overall situation regarding interest earnings by the Fund. The decision to hold a special meeting has been taken by the Labour Minister Shri Sharad Yadav in his capacity as a Chairman of the Central board of Trustees. The Board during its last meeting on January 22, 2002 had recommended as an interim measure to continue 9.5% as the rate of interest to Employment Provident Fund subscribers for 2002-03. It was also decided that the Board would meet again in March to review the overall situation regarding interest earnings by the Fund in view of the fact that exact financial position regarding interest earnings would be known only after the presentation of general budget for the financial year 2002-2003.

    The 9.5% interest rate was recommended as the Central Board of Trustees expected that the interest earnings would be rupees 5,978.50 crore in 2002-2003 whereas expected payment of interest to EPF subscribers to be Rs.5,630.69 crores leaving a surplus of Rs.347.90 crore. However, with a reduction of 0.5% in the special deposit interest rate would cost reduction in total interest receivable in the Provident Fund to the tune of Rs.238.42 crore.

    The Corpus of the Employment Provident Fund was Rs.59,938.63 crore as on 31^st December 2001. Of this 79.55% is in investment holding in Special Deposit Scheme, 8.18 % in Public Sector/Financial Institutions, 7.06% in Central Government Loans, 3.95% in State Government Loans and 1.26% in Government Guaranteed Loans. The Fund is being invested according to pattern of investment holding prescribed by the Government of India from time to time.