“A new Universal Pension Scheme may be considered in view of the clarion call of the prime minister on universal social security and global trends, to cater to those not covered under EPS-95 including gig workers and self-employed persons,” the committee said in its report on pension reforms.
The report was discussed at the central board of trustees meeting of the EPFO last month, people familiar with the deliberations said.
The ad-hoc committee, headed by labour secretary Sunil Barthwal, said the sustainability of EPS-95 was a cause of concern and backed the need for exploring different investment patterns.
“The design of EPS provides little flexibility though increase in minimum service period from 10 to 15 years may lead to enhancement of benefits up to 33%,” the report, reviewed by ET, said.
The committee feels India must follow the global trend, which shows that most countries have shifted from defined benefit plans to defined contributions for pension.
“Defined contribution pension scheme allows individual accounting and amounts proportionate to the savings,” it argued.
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