Employee Pension Fund nursing a Rs22,659-crore deficit: Kharge
04 Aug 2011
There was an actuarial deficit of Rs22,659 crore in the Employees' Pension Fund (EPF), as per valuation done by a government-appointed valuer for the years ending 31 March 2005 and 2006, labour minister Mallikarjun Kharge told the Lok Sabha yesterday. He said the valuation was done using a World Bank model.
He was replying to a question in the Lok Sabha on the sustainability of the present pension scheme and the possible role of the World Bank in making it sustainable.
"The Pension Reform Options Simulation Toolkit (PROST) Model, prepared by the World Bank has also been used for special valuation," he said.
He said increasing the reduction factor for early pension and introduction of a withdrawal option for commutation and return of capital, had been taken to check the deficit. The government, he said, was also considering an expert committee report set up to review the scheme.
Replying to another question, Kharge said the Employees' Provident Fund may be extended to all companies with over 10 employees.
"The proposal is under examination and consideration of the government," Kharge said. At present, the EPF Act has provisions that any factories or establishments having 20 or more employees have to contribute to the EPF.
