The Centre Government plans to merge Coal Mines Provident Fund Organisation (CMPFO) with the Employees’ Provident Fund Organisation (EPFO), as a large asset-liability mismatch is imminent in the CMPFO’s pension fund.
The Coal Mines Provident Fund Organisation has been entrusted with the responsibility of administering the Coal Mines Provident Fund and Miscellaneous Provision Act, 1948, and different schemes framed thereunder. It is an autonomous organization governed by a Board of Trustees and functions under the overall supervision of the Ministry of Coal, Government of India.
“Currently, CMPFO pays monthly pensions of about Rs 230 crore while inflow is about Rs 280 crore. With an increase in the number of retired coal employees and a fall in the number of contributing members, the pension fund is now facing the possibility of running completely dry by 2028.”
The CMPFO covers employees of Coal India, Singareni Collieries, mining division of DVC, coal mining workers of Sail, Jindal Steel & Power, Jindal Power, Usha Coal Mine, Jayaswal Neco Industries, Monnet Ispat & Energy and Sarda Energy & Minerals.
CMPFO administers the following Schemes
- Coal Mines Provident Fund Scheme
- Coal Mines Family Pension Scheme(merged with Pension Scheme in 1998)
- Coal Mines Pension Scheme
- Coal Mines Deposit Linked Insurance Scheme
According to an ET report, adhering to a ministerial direction, the CMPFO has recently formed a panel to examine the merger of the two organizations. It will submit a report to the government on feasibility and pros and cons of the proposed merger,” a senior member of the CMPFO told to Media.
The panel includes additional commissioner AK Sinha, joint commissioner UP Kamal, and regional commissioner Navin Kumar. This is the second effort of the government for the merger of CMPFO and EPFO. The first effort was made almost three years ago when it formed a panel to consider the merger but it was put on the back-burner after a three-day strike by the unions against the proposal.
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