Improvident fund

With a R50,000 crore shortfall in its pension fund and unclaimed subscriber balances of, hold your breath, R22,600 crore, it can’t possibly get worse at the Employees Pension Fund Organisation (EPFO). Which is why there is a clamour to allow subscribers to migrate from the EPFO to the privately-run New Pension Scheme (NPS) that offers much better returns—subscribers got a return of 9.95% in FY12, 11.35% in FY11 and 13.05% in FY10 for Scheme-G (government securities), while the EPFO offered 8.25%, 9.5% and 8.5% in these years.

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