The Employees’ Provident Fund Organisation (EPFO) manages the contributions under the Employees Provident Fund Scheme. The labour ministry has mooted a proposal to allow EPFO subscribers to switch to the National Pension System (NPS).
NPS is a voluntary retirement scheme. The Pension Fund Regulatory and Development Authority Act (PFRDA) regulates the contributions to the NPS. The EPFO is seeking suitable amendments to the PFRDA Act to facilitate the switching over of subscribers. Also, the EPFO is seeking that subscribers who choose NPS should have the facility to return to the Employees’ Pension Scheme.
The Central Board of Trustees of the EPFO will meet next month to discuss the proposed amendments to finalise the revisions to the PFRDA Act. The labour ministry had earlier called for a meeting on September 2019 on the proposed measures to the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952.
However, various trade unions boycotted the meeting. The trade unions do not consider NPS equivalent to the Employees’ Pension Scheme and state that there is no certainty in the rate of return.
The Central Board of Trustees comprises of representatives of employees and employers, and the Central and State governments.
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