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“A brand new Common Pension Scheme could also be thought-about in view of the clarion name of the prime minister on common social safety and world tendencies, to cater to these not lined underneath EPS-95 together with gig staff and self-employed individuals,” the committee mentioned in its report on pension reforms.
The report was mentioned on the central board of trustees assembly of the EPFO final month, folks conversant in the deliberations mentioned.
The ad-hoc committee, headed by labour secretary Sunil Barthwal, mentioned the sustainability of EPS-95 was a reason behind concern and backed the necessity for exploring completely different funding patterns.
“The design of EPS supplies little flexibility although improve in minimal service interval from 10 to fifteen years could result in enhancement of advantages as much as 33%,” the report, reviewed by ET, mentioned.
The committee feels India should comply with the worldwide pattern, which exhibits that almost all nations have shifted from outlined profit plans to outlined contributions for pension.
“Outlined contribution pension scheme permits particular person accounting and quantities proportionate to the financial savings,” it argued.
