Tata Motors Battles EPFO Over Pension Fund Transfer

29 Jul 2024 , 12:18 PM

Tata Motors, one of the few corporations with its own exempted pension fund, is in a court struggle with the Employees’ Provident Fund Organisation (EPFO) over pension fund transfers.

The manufacturer had sought to resign its exemption status and transfer its employee provident fund corpus to the EPFO, but the pension funds agency has requested that the company provide details of documents and other material pertaining to the pension corpus of all employees. The EPFO said that the information on certain accounts was insufficient to approve the transfer, according to a court filing seen by ET.

According to ET report, while the EPFO has agreed to the transfer of the provident fund corpus, it is demanding data about the pension program. The EPFO has directed Tata Motors to complete a rigorous audit of its pension fund books and records, while rejecting the company’s right to forfeit its exemption status.

Paragraphs 38 and 39 of the Employee Pension Scheme allow the government to exempt an establishment from the operation of the pension scheme. According to an official, the EPFO wants the requirements outlined in this section to be met before granting the company’s request.

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