Latest News Update About According to Samirendra Chatterjee, who is Central Provident Fund Commissioner (CPFO), the Employees' Provident Fund Organization (EPFO) is going to allow the exempted trusts to hit and use Provident Fund Trust reserves to meet the legal payout rate. This move is supposed to benefit more than 2700 exempted trusts, which are running in deficit. There was a problem when EPFO had increased the PF rate from 8.5% last year to 9.5% this year.
The exempted trust had a tough time as they could not use the reserves to meet the deficit. After EPFO changed the policy of accounting, the surplus resulted around 1,731 crore. The policy was changed to accrual based from cash based.
This year in May, an internal circular memo was addressed to all Regional Provident Fund Commissioners (RPFCs) from EPFO that as result of wrong investment decision, or as result of defalcation or any shortfall in the interest rate when compared to legal rate, as a result of loss, he employer will have to compensate the interest or loss.
While speaking at a seminar Mr. Chatterjee said that the notification will be put the website soon.
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