Striking down the objections from the privately-managed EPF trusts, the Central Board of Trustees of the Employees' Provident Fund Organization, which met on Wednesday reiterated its decision of 9.5 interests on all EPF accounts for this fiscal.
Though some members raised the issue that was not part of today's agenda, the EPF was quick in confirming that the higher rate had to be paid —including those operating under firms.
Several industry bodies such as Employers Federation of India had objected to the rate stating the EPF calculation is based on Rs 1,731 crore interest account realization, the advantage of which the company-run EPF trusts do not have.
"We put our argument but the CBT is fixed on its decision," Sharad Patil, secretary general, Employers' Federation of India said after the meeting.
The board, which also examined extension of tenure of existing fund
managers by another three months - till June, as the process of selection of new fund managers was yet to be completed, decided against the proposal.
Instead, it was decided to entrust the fund to SBI till new fund managers are selected.
On the recommendation of the Finance & Investment Committee, the CBT in July 2008 approved HSBC AMC, ICICI Prudential AMC, SBI and Reliance Capital AML for management of the EPF corpus.
The contract of two years was extended by another year till September 2010 after which the fund managers got another six months till March.