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EPS to be merged with NPS: FM

In a letter to former labour minister Mallikarjun Kharge in August 2012, finance minister P Chidambaram said that EPS should be wound up

August 06, 2013 3:17 IST | India Infoline News Service
The finance ministry has asked Employees’ Pension Scheme (EPS), run by the Employees’ Provident Fund Organisation (EPFO), to close down and shift its subscribers to the National Pension System (NPS), according to a media report.

NPS is run by the finance ministry, with no contribution from the government or any guaranteed benefits to subscribers.

In a letter to former labour minister Mallikarjun Kharge in August 2012, finance minister P Chidambaram said that EPS should be wound up or “grandfathered”, the report added.

Chidambaram’s letter to Kharge was recently discussed in a meeting among officials of the EPFO, the Pension Fund Regulatory and Development Authority (PFRDA) and the finance ministry.

Last week, Labour Minister Sis Ram Ola said that EPFO should give priority to timely transfer and withdrawal of provident funds as well pension claims by employees.

The minister has emphasised that citizens rightly expects efficient and transparent mechanism in claim settlements.

EPFO is likely to start online transfer of PF accounts on changing jobs by this Independence Day on August 15, a move that would benefit over 13 lakh such applicants every year.

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