Sunday, May 22 2005 10:48 Hrs (IST) - World Time -

New Delhi: A crucial meeting of the Central Board of Trustees (CBT) of the Employees Provident Fund (EPF) will be held in New Delhi on May 28 to discuss measures to bridge the shortfall of Rs 927 crore in view of Finance Minister P Chidambaram's announcement of 9.5 per cent interest for 2004-05.

The meeting, which will also discuss the interest rate for 2005-06, comes almost a month after Finance Ministry fulfilled the long-pending demand of Labour Ministry by ratifying 9.5 per cent interest for 2002-03 and 2003-04 for about four crore subscribers in the country.

While the EPF earned a surplus of Rs 204.92 crore during 2002-03, there was shortfall of Rs 271 crore in 2003-04.

For 2002-03, the EPF board declared 9.5 per cent while for 2003-04 it was 9 per cent along with a 0.5 per cent bonus on the occasion of EPFO's golden jubilee year.

The representatives of central trade unions, which are one of the parties of the tripartite Central Board of Trustees of EPFO, had been attacking the Finance and Labour Ministries on the delay in ratifying the interest for the last three years.

Though the rate for 2002-03 and 2003-04 were ratified, the Finance Ministry is awaiting a recommendation from the CBT for the interest rate to be ratified for 2004-05.

The EPF trustees had earlier decided an "interim" 8.5 per cent for 2004-05, a move that was opposed by trade unions, mainly belonging to Left Parties.

After hectic parleys with Prime Minister Manmohan Singh on the issue, Chidambaram had announced earlier this year a one per cent hike in EPF rate to 9.5 per cent, leaving the CBT to find ways to cover up the estimated Rs 927 crore shortfall.