Protest against the Suomoto Declaration of Rate of Interest For P.F

Source: BMS      Date: 7/23/2012 1:03:38 PM

Ref: No.BMS/A-25/2012            Date: 01-05-2012

Sri  Mallikarjun  Khargeji
Hon’ble Labour & Employment Minister
& Chairman EPFO
Shram Shakti Bhawan, Rafi Marg,
New Delhi - 110001

Sub:-  Protest against the Suomoto Declaration of Rate of Interest  For P.F

Sir,
      We have been observing that a new practice of  unilateral declaration  of  the rate
  of interest of EPF  has emerged.

      Until now the Central Board of Trustee, the statuary body of of EPF Act 1952 has been taking Decision about the Rate of Interest for EPF considering all aspect related to Investment and Earning.  Since it  is the sole subject of CBT.

      But since last month of March 2012 all decisions for cutting down or increasing up is being taken unilaterally without taking confidence of CBT.

       In the last month of March 2012 it was unilaterally cut down to  8.25% from 9.5% and now in April 2012 it has been again suo-moto  increased to 8.6% from  8.25% without discussion at CBT.

       We all should have welcome has the Govt. increased the earning by providing higher Interest on investment of P.F  in Special Deposit Scheme ( SDS ) of  Rs.55000/- crore . But such suo- moto decisions can never be accepted

       We strongly protest and request your good office to kindly Convene a meeting of CBT as early as possible with a view to discuss  the whole issue.

                With regards
 Sincerely yours, 

                                                                                            
(  B.N.RAI)  

Member CBT