Live News Update: Recommendation of 7.6% interest on PF to coal workers of Jharkhand
Latest Updated 23/02/2024: The CMPF Board has recommended to the Finance Ministry to give 7.6 percent interest rate on the Provident Fund (PF) of coal workers in the financial year 2023-24. The decision was taken in the CMPFO (Coal Mines Provident Fund Organization) Trustee Board meeting held in Delhi on Thursday under the chairmanship of Coal Secretary. A proposal of 7.5 percent interest rate was brought to the board by CMPFO.
- After extensive consideration in the Board, 7.6 percent was recommended.
Even in the last financial year, the interest rate was only 7.6 percent. However, it is much less than EPFO. EPFO has announced to give 8.25 percent interest rate.
On lower interest rate than EPFO, it was said that the interest rate depends on the income from investment of PF fund. EPFO is investing more in the shares, about 15%. Whereas CMPF invests five percent of the total PF fund in shares. Whereas most of the funds of CMPF are in government securities and bonds. Only five percent is invested in shares.
The issue of decision regarding raising the minimum pension to Rs 1,000 in CMPFO has not yet been implemented was raised in the board. The reply was that a minimum pension of Rs 1,000 has already been recommended by the CMPFO Board long ago. Approval has not yet been received from the Finance Ministry. The union leaders demanded that the minimum pension of Rs 1,000 should be implemented from the date of its recommendation in the board. That is, arrears should be given to pensioners after getting approval from the Finance Ministry.
After studying the pension fund in CMPFO, the actuary's report has stated a loss of Rs 45 thousand crores. A committee has been formed under the chairmanship of Additional Coal Secretary Rupinder Brar to decide how to improve the pension fund. The committee will present the report in the next board meeting to be held in June. By the way, there was also talk about giving Rs 20 per ton of coal to Coal India in the pension fund. CMPF Act and Scheme will be redrafted. A committee has been formed for this also. The unions also demanded increase in pension.
Coal Secretary, Coal India Chairman, CMPFO Commissioner, CMD or DP from subsidiary companies, Ramendra Kumar, Rakesh Kumar, Laxma Reddy, DD Ramanandan etc. from unions were present in the board meeting.
Interest rate in CMPFO is decreasing
Financial Year Interest Rate (in)
2018-19 8.6
2019-20 8.5
2020-21 8.5
2021-22 8.3
2022-23 7.6
2022-24 7.6
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Transfer of CMPFO headquarters postponed till Lok Sabha elections
CMPFO headquarters will be shifted from Dhanbad. The proposal regarding transfer of the headquarters was discussed and it was said that the transfer would be done after the Lok Sabha elections. Earlier it was decided to shift the CMPFO headquarters to Ranchi. Now along with Ranchi, the name of Hyderabad is also included. However, most of the members in the board supported Ranchi shifting. Some insisted on keeping the CMPFO headquarters in Dhanbad itself. Well, it has been decided to shift from Dhanbad. The decision is to be taken in Ranchi and Hyderabad.
These issues also arose
Immediate action was demanded on the pending employment in the death case of CMPFO personnel. It was said that initiative will be taken on this issue. On the shortage of manpower, it was said that the shortage of staff will be filled through SSC. Whereas big posts will be filled on deputation basis.
The issue of more than Rs 700 crore lost in DHFL was raised. Said that action will be taken against the culprits on the basis of the inquiry report. That company no longer exists, so the money written off is not expected to be recovered.
BMS's Lakshma Reddy angry over seating arrangement
Inside information was received that during the board meeting, BOT member Lakshma Reddy from BMS got angry over the seating arrangement. Lakshma Reddy claimed the seat where AITUC's Ramendra Kumar was seated, calling BMS the biggest union. He raised the issue with the Coal Secretary. However, Lakshma Reddy was later pacified after persuasion. On the matter, a CMPF official said that the arrangement of seats is based on the preference of the BOT member. Ramendra Kumar is the oldest union leader, hence he was made to sit on the earlier seat.
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