NEW DELHI: Not a single migration has taken place yet from EPF pension plan to NPS even after a year of government allowing the one-time switch as modalities are yet to be worked out, PFRDA chairman said today.
The Finance Ministry has made a statement last year allowing one time change from EPF to NPS. But the modalities are still to be worked out, Pension Fund Regulatory and Development Authority of India (PFRDA) Chairman Hemant G Contractor told PTI.
“We expect some clarity by government. Last year the government had said that they will permit switch from Employees Provident Fund (EPF) to National Pension System (NPS). But how that is going to happen is something which has not been clearly spelt out. So that’s the clarity that we are awaiting from the government,” Contractor said.
On whether any such switch has happened so far, Contractor said: “Nothing has happened so far, no migration has happened.”
In the proposed amendment made by government last year, employees have been given one time option to join NPS in lieu of EPF, which is run by retirement fund body EPFO. NPS is run by PFRDA.
In his Budget Speech 2015-16, Finance Minister Arun Jaitley had said: “With respect to the EPF, the employee needs to be provided two options. Firstly, the employee may opt for EPF or the New Pension Scheme.”
However it is to be noted that union leaders have already expressed reservations against providing option to workers to choose between EPF and NPS, saying that NPS is not a social security scheme rather it is a saving scheme