Return on EPFO cannot be compared with that of other pension schemes: Labour Minister
Updated: Jul 30, 2014 03:22:01pm
New Delhi, Jul 30 (KNN) Return on Employees’ Provident Fund Organization (EPFO) cannot be compared with return on other Pension Schemes like New Pension Scheme (NPS), said Minister of State for Mines, Steel and Labour and Employment, Vishnu Deo Sai adding that the return on EPFO investments is fixed whereas on NPS it fluctuates on a daily basis depending on the market conditions.
Sai informed the Parliament that the government has declared 8.75 per cent interest on Employees’ Provident Fund (EPF) for the year 2013-14.
“Return on EPFO fund cannot be compared with return on other Pension Schemes like New Pension Scheme (NPS). The declaration of the return on NPS is on the basis of the accounting policy prescribed by NPS which allows the Net Assets Value (NAV) to be declared on the basis of current market value of the investments, while EPFO follows the cost value of the investment for accounting its investment and return is declared on the basis of actual receipt of interest on the investments,” he said.
“The return on EPFO investments is fixed whereas the return on NPS is not fixed and fluctuates on daily basis depending on the prevailing market conditions,” he added.
The Minister said that presently the funds of EPFO are invested as per the pattern of investment notified by the Government in November, 2013 wherein only investments in corporate debt and Government bonds are allowed. There is no provision for investments in equities.
Meanwhile, speaking on the issue of the safety and welfare concerns of the labourers/workers he said that the labourers/ workers engaged in various industrial units in the country are taken care by the Government through enactment of various statutes in the form of Factories Act, 1948 and the Rules framed thereunder.
Sai has said that the provisions of the Factories Act, 1948 and Rules framed thereunder are enforced by the respective State Governments /Union Territories through their State Factories Inspectorates/Directorates and actions are taken by the Government for violations of the provisions in accordance with the statutory provisions for the same.
The Minister said that other Statutes/measures covering the social security provisions and welfare of industrial workers include; the Employees’ State Insurance Act, 1948, Employees’ Provident Fund and Miscellaneous Provisions Act, 1952, the Maternity Benefit Act, 1962, the Payment of Gratuity Act, 1972 etc. (KNN/SD)
Sai informed the Parliament that the government has declared 8.75 per cent interest on Employees’ Provident Fund (EPF) for the year 2013-14.
“Return on EPFO fund cannot be compared with return on other Pension Schemes like New Pension Scheme (NPS). The declaration of the return on NPS is on the basis of the accounting policy prescribed by NPS which allows the Net Assets Value (NAV) to be declared on the basis of current market value of the investments, while EPFO follows the cost value of the investment for accounting its investment and return is declared on the basis of actual receipt of interest on the investments,” he said.
“The return on EPFO investments is fixed whereas the return on NPS is not fixed and fluctuates on daily basis depending on the prevailing market conditions,” he added.
The Minister said that presently the funds of EPFO are invested as per the pattern of investment notified by the Government in November, 2013 wherein only investments in corporate debt and Government bonds are allowed. There is no provision for investments in equities.
Meanwhile, speaking on the issue of the safety and welfare concerns of the labourers/workers he said that the labourers/ workers engaged in various industrial units in the country are taken care by the Government through enactment of various statutes in the form of Factories Act, 1948 and the Rules framed thereunder.
Sai has said that the provisions of the Factories Act, 1948 and Rules framed thereunder are enforced by the respective State Governments /Union Territories through their State Factories Inspectorates/Directorates and actions are taken by the Government for violations of the provisions in accordance with the statutory provisions for the same.
The Minister said that other Statutes/measures covering the social security provisions and welfare of industrial workers include; the Employees’ State Insurance Act, 1948, Employees’ Provident Fund and Miscellaneous Provisions Act, 1952, the Maternity Benefit Act, 1962, the Payment of Gratuity Act, 1972 etc. (KNN/SD)
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