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There is an actuarial deficit of Rs 22,659 crore in the Employees' Pension Fund. The valuation for the years ending March 31, 2005 and 2006 was done by a Government-appointed valuer, who also used a World Bank model, the Union Labour Minister, Mr Mallikarjun Kharge, told Parliament on Wednesday. The Minister was replying to a question in Lok Sabha on whether the present pension scheme had become non-sustainable and if the World Bank was helping 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. Mr Kharge said the Government was considering an expert committee report set up to review the scheme. Meanwhile, corrective steps, such as increasing the reduction factor for early pension and introduction of a withdrawing option for commutation and return of capital, had been taken to check the deficit, he said.
EPF extension
In a reply to another question, Mr Kharge said the Employees' Provident Fund (EPF) may be extended to all companies with over 10 employees. “The proposal is under examination and consideration of the Government,” Mr 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.
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