New Delhi: Non-implementation of recommendation of the actuary led to acute deficit in Pension Fund, incorrect diversion of funds from Provident Fund (PF) account to Pension Fund account, non-adherence to the government’s guidelines for investment fund of own employees have adversely affected the financial interests of the members of the Coal Mines Provident Fund Organisation (CMPFO), the public expenditure watchdog report said.
Besides, incorrect payment of interest, excess payment of pension, untraced balance of Rs 1.71 crore for more than seven years, non-linking of current account with corporate liquid term deposit scheme and non-review of rate of administrative charges were also amongst the reasons for its worst condition, the report of Comptroller and Auditor General of India (CAG) for the year ended March 2016 said.
The audit found that the Coal Mines Provident Fund Organisation (CMPFO) which was established to provide social security, inculcate a spirit of savings and to provide future of all eligible employees of coal industry on their retirement or for their dependents, diverted Rs 3520.14 crore from PF account to Pension Fund account during 2007-08 to 2014-15 to meet the deficit of pension fund.
Out of this, Rs 1,737.99 crore was returned to the PF account, leaving an outstanding liability of Rs 1,782.15 crore which was yet to be returned as of August 2016. The audit also said that the diversion of fund from PF account to Pension Fund account as a violation of provisions of Coal Mines Provident Fund (CMPF) scheme.
