SUBHASH MISHRA
Dhanbad, May 19: The Public Accounts Committee (PAC) in its 2020-21 audit report has charged that Coal Mines Provident Fund Organization (CMPFO) management has hampered the financial interest of lakhs of coal company pensioners by violating guidelines.
The report revealed that funds of CMPFO were not utilized effectively, which badly hampered the financial benefit of beneficiaries for which it was formed. The Committee in its report has also indicated that the non-implementation of actuary led to an acute deficit in the pension fund of the organization.
“The board of trustees entrusted with the task of appointing an actuary every 3 years to review the value of Pension Fund but that was not followed,“ said the report.
PAC also found an incorrect diversion of funds, incorrect payment of interest on a balance of Rs 1.71 crore for more than 7 years and non-review of the rate of interest for nearly five decades. The committee also found serious irregularity in the non-implementation of recommendations which posed threat to the sustainability of the pension fund.
However, explaining the reason for the net deficit, the ministry of coal replied that there was no actual deficit in the CMPF organization. The pension scheme appears to be faulty which led to an actuarial deficit just after 5 years of its implementation.
The PAC audit highlighted glaring blenders in the financial properties of the CMPFO. The board of trustees recommended increasing the contribution to 14% (7% each from employer and employees) with effect from October 1, 2017.
For the smooth running of the pension scheme, PAC suggested capping of maximum pension, an extension of the period for arriving at the average salary for fixation of pension, and appointment of actuaries for suggesting further measures. The committee also expressed concern over the non-review of an administrative charge for the last 39 years since 1981.
The report also pointed out that the CMPFO fund was disinvested in different schemes including payment of Rs 18.11 crore in IDBI Bank and other institutions but that did not return. This hit the efficiency hard on the part of the Coal Mines Provident Fund Organization.
