| PermanentPF a/c numberby 2013' |
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VIJAYCROY Chandigarh, 12 September Come March 2013, salaried employees will be able to switch jobs, without worrying about withdrawing or transferring their savings with the Employees Provident Fund Organisation (EPFO). As the EPFO migrates from a decentralised to a centralised system, it intends to give permanent account numbers to their holders. Currently, salaried employees need to open new EPF accounts whenever they change jobs. The old PF numbers are either closed, or the money in it withdrawn or transferred into new accounts. It turns more complicated when the employee moves from one state to another for a job. To put an end to this difficulty, the EPFO intends to shift to a permanent account number, akin to a mobile number, to make this possible. Speaking to Business Standard ,EPFO, Central Provident Fund Commissioner, R C Mishra, said, " At present our offices are decentralised. So, the employee has to often open a new PF account whenever he changes job and has to transfer his savings. We are making our operations centralised. In the proposed method, the employee will be given a single permanent number valid irrespective of the employer or city he moves to. He doesn't need to open a new PF number every time he switches his job." Mishra added that a permanent account number would not only be of great help to employees but it would also reduce unnecessary burden on the EPFO, resulting in huge savings. EPFO has set a deadline of March 2013 to make its operations centralised. Mishra added, "We are hopeful that all required infrastructure would be in place by the end of this fiscal. We are working on the modalities and very soon appoint a consultant to initiate the process. Once a consultant is appointed, the EPFO will follow its advice for business process re-engineering to redesign the workflow within the organisation. Besides that it would also assist us in floating tenders for appointment of vendors to undertake the project." EPFO has about 110 million member. Of this, an estimated three crore are active members. In many cases an employee has multiple accounts and also a good portion of accounts are lying idle as subscribers have not transferred their funds to their new accounts. Currently, the organisation manages a corpus of at least ~4.10 lakh crore. A senior official said that once the new system is implemented, it will lead to a decline in the number of claims settlement procedures also. Officials also agreed that with the implementation of permanent account number, the cases of premature withdrawal will reduce drastically. Less hassle for employees while shifting jobs "... We are making our operations centralised. In the proposed method, the employee will be given a single permanent number, valid irrespective of the employerorcityhe moves to. He doesn't need to open a newPF numbereverytime he switches his job" RCMISHRA Central Provident Fund Commissioner |
| Sebi's proposed move on exec pay unwarranted: Industry players |
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Mumbai, 12 September The Securities and Exchange Board of India (Sebi) had yesterday said they planned to regulate executive compensation in listed firms. However, industry players said that this move is uncalled for, at a time when industry is grappling with other issues. Sebi chairman UK Sinha had said the regulator may ask the firms to form a 'remuneration committee' headed by an independent director. Further, he has indicated that acase was being made for disallowing employment stock option plans (Esops) in the financial sector. He had also mentioned that variable pay would be ploughed back if profits suffer. Variable pay for executives is usually linked to companys profits. But, during tough market conditions, instead of doing away with variable pay, companies decide to postpone it by two to three years. This variable pay is given after the stipulated time period to the executives, hence not compromising with the cash component of the executive. Companies, however, are of the view that it would be difficult to implement such regulations across companies. "Issues like variable pay and independent directors have already been addressed by the proposed Companies Bill, which is on the anvil. Though there is nothing wrong with what Sebi has said, this move is unwarranted now because corporates would anyway be following the rules when the bill gets passed," said the human resource director of a Mumbai-based conglomerate. Another board member and compensation practice head of a consumer goods firm opined that executive pay was already being regulated by the Ministry of Corporate Affairs and the recent comments by Sebi on the same bring about a disconnect between the two. Executive recruitment firms explained that in certain cases, executive pay may be difficult to govern. Sangeeta Lala, VP, Team Lease informed that the size of the company needs to be paid attention to. She further added that since remuneration involves both cash and kind, it would be difficult to implement the proposed guidelines across the board. "Finding the basis of standardisation will be difficult. Moreover, corporate honchos would also need to agree to it," said Lala. Industry players, however, agreed that there was wide discrepancy in the executive compensation model across companies and there was some regulation needed on the same. Anandorup Ghose, head of executive compensation, Aon Hewitt also admitted that there is a governance issue among companies in terms of executive pay. |
Company Secretary, Chennai
email csarengarajan@gmail.com
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