The Employee Provident Fund Organisation (EPFO) has said it will continue to settle claims at the rate of 9.5 percent till the new rates are announced for financial year 2011-12.
"Pending declaration of the rate of interest for 2011-12, for settlement of claims of the EPF subscribers, the rate of interest as provided shall be made applicable," said a circular issued by the EPFO on April 27.
The government had decided in September to increase the rate of return to 9.5 percent to subscribers of the fund. The decision was prompted after a surplus of Rs.1,700 crore was found on the books of the EPFO.
"Since the rate of interest for the year 2010-11 has been declared at 9.5 percent per annum, settlement of claims of the EPF subscribers during 2011-12 shall be made at 9.5 percent per annum till the rate of interest is declared for 2011-12," the order said.
The new circular will benefit all those subscribers who are opting for a full and final settlement of their claims or are retiring, till the time the new orders with regards to the rate of return comes in.
If the new rate is lower than 9.5 percent, the subscriber will retain the gains, but if it is higher than 9.5 percent, he or she will be able to claim the difference.
