The government increased interest rates on Special Deposit Scheme and State Provident Funds for FY13 to 8.8% from 8.6%
New Delhi: The Indian government has increased interest rates on Special Deposit Scheme (SDS) and State Provident Funds for the year 2012-13 to 8.8% from 8.6% currently.
The new rate will be applicable from April, 1, 2012, an official statement said.
"Government has revised the interest rates for the financial year 2012-13 in respect of State Provident Funds and Special Deposit Schemes (SDS) for non-government provident, superannuation and gratuity funds from 8.6% to 8.8%t with effect from 1 April 2012", it said.
SDS is a scheme in which the non-government provident funds like Employees' Provident Fund Organisation (EPFO) invest. At present, EPFO funds to the tune of Rs55,000 crore are parked in the SDS.
The government has also hiked the interest rate on General Provident Fund from 8.6% to 8.8%.
The revised interest rate on government provident funds will benefit the subscribers of General Provident Fund (Central Services), Contributory Provident Fund (India), All India Services Provident Fund, State Railway Provident Fund and General Provident Fund (Defence Services).
Among others, Indian Ordnance Department Provident Fund, Indian Ordnance Factories Workmen's Provident Fund, Indian Naval Dockyard Workmen's Provident Fund, Defence Services Officers Provident Fund, and Defence Services Officers Provident Fund will also be getting 0.2% more interest, the statement said.
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As time overtakes value of money, the retirees will need to live in penury.
It is evident from the Pensions disbursed by the EPFs which were 500 per month and that over 14 lakh people recieve it. Not it will be raised to a princely sum of Rs 1000. Your heart will sink if you know the efforts needed to disburse these pentions- joint photographs, bank account details which are changing, nominees, heairs and family pension. All for Rs 500 per month.
As a nation we have apenchant for indulging in triviliaties while Billions are wasted away.
We are writing our own fate through the bureaucracy we have inherited. Unfortunately their fortunes have not waned with time like the value of Pension funds they govern.