People's Democracy

CITU Condemns Move To Stop PF Interest Payment

THE CITU has denounced the anti-worker decision taken by the Employees Provident Fund Organisation (EPFO) to stop release of any interest- payment to members’ account for the month of April 2003 till the final notification for declaration of rate of interest for the year 2003-04 on PF deposits  is issued by the central government. The CITU secretariat in a statement on April 30 has demanded immediate withdrawal of the circular issued in this regard. It has also reiterated the demand, unanimously voiced by all the trade unions for restoration of the interest rate on provident fund to 12 per cent.

In a recent circular issued to the Regional PF offices, the EPFO has sent an instruction to stop release of interest payment.  The EPFO has also advised the offices to settle the PF claims of the outgoing members owing to superannuation, death or otherwise, in part, without crediting any interest for the period from April 2003 onwards.

It is learnt that the recently reconstituted Finance and Investment Committee of the truncated Central Broad of Trustees (CBT), without the representation of AITUC and CITU, has made such retrograde recommendation.

Such action of EPFO is unprecedented. Even during last year, when there was a divergence of views between the CBT and the Ministry of Finance over the continuance of the 9.5% interest rate, the EPFO continued to credit interest-payment to members’ account at the existing rate. There is no reason why there should be deviation from this practice this year.