The Central Board of Trustees of the Employees Provident Fund (EPF) , at a special meeting, held yesterday (8.2.2000) rejected outright the two reports of the Expert Committee (popularly called as Dave Committee) on devising a new pension system or India.

The employees’ side represented by the AITUC, BMS, CITU, HMS, INTUC and UTUC(LS) flayed the recommendations of the Dave Committee both on grounds of jurisdiction and merits.

The discussion in the meeting of the trustees was preceded by presentation on the Dave Committee proposals by a team from the ministry of social justice. The chairman of the expert committee (S.A Dave) who was invited chose to send some of his deputies instead.

The meeting faulted the Dave Committee for not associating any of the social partners, the employees, the employers and the government at any stage of the committee’s working – from that of "inputs and ideas" to the three rounds of "consultations-meetings". Nor did the committee back up its recommendations by any scientific study or actual calculations.

The meeting was also vociferously critical of the Dave panel report for passing adverse comments on the working of the PF and Pension Funds, without even a scrutiny of any record/agreement of the EPFO or holding any consultations in this regard.

The meeting pointed out that the main thrust of the Dave Panel was not provision of social security to the unorganised workers but to withdraw whatever government contribution or subsidy in this regard and leave the destitute elderly to prepare for their old age only through thrift and self help. The recommendations like curtailing premature withdrawals from the EPF, levy of 10% punitive tax on withdrawals, withdraw the government contribution of 1.16%, diverting the workers’ savings to corporate bonds and equity market and the like were termed as retrograde moves tampering with the existing schemes.

The blueprint of a new pension system drawn up by the Dave panel was impracticable and will have no takers.