New Delhi, Feb 26: The Employees Provident Fund
scheme is being reviewed to assess how better benefits could
be provided to employees and two committees have been set up
for the purpose, government told the Lok Sabha on Thursday.
Replying to a Calling Attention Motion, Labour Minister
Oscar Fernandes, however, said there will be no amendment to
the Employees` Pension Scheme 1995 in the wake of Sixth
Central Pay Commission as the two issues are not related.
He said two committees, including one headed by a Special
Secretary, have been set up to review the EPF scheme and
ensure that it brings better benefits to the employees.
"We are reviewing the scheme. We are taking a relook at
the scheme," Fernandes said.
A decision will be taken after the committees submit
their recommendations, he said.
The Minister said discussions are underway to see how the
corpus for the scheme could be raised, which will require
hiking of contribution by the government as well as the
employers.
The Minister said under the present scheme, commutation
of pensionary benefits is permitted, which has led to the loss
of Rs 40,000 crore.
Employees use this facility and as a result lose their
pensionary benefits, he said, adding the government has
already decided to stop commutation.
Bureau Report
