Deficit in EPS fund not matter of concern: Labour Minister

Stating that the deficit in the Employees' Pension Scheme Fund is not a concern, Labour Ministry is taking steps to bridge the asset-liability gap in the same, Parliament was informed today.
"It has been reported by the Actuary that the deficit in terms of present value is less than 4 per cent, 2 per cent and 2.5 per cent of the total liability as of March 31, 2012, March, 2013 and March, 2014 respectively and it is not a matter of concern," Labour Minister Bandaru Dattatreya said in a written reply in Lok Sabha.
As per the actuarial reports for the valuation of FY12, FY13 and FY14, the deficit in the Employees' Pension Scheme Fund was Rs 10,855.33 crore, Rs 6,712.96 crore and Rs 7,832.74 crore respectively.

Dattatreya said the membership of the Fund has been restricted to employees whose wages at the time of joining is at or below the wage ceiling of Rs 15,000 per month.
Also, the provision for contributing to the EPS on wages higher than wage ceiling at the joint option of the member and employer has been withdrawn, thereby restricting liability on the EPS Fund.
Among other steps, the Minister said the contribution of 1.16 per cent from government is also restricted only to such workers, who join the scheme below the wage ceiling and only up to Rs 15,000.
"Calculation of pensionable salary, which is a factor for benefit determination are based on an average of last five years instead of the previously applicable average of 12 months wages," he added.