Pf Reforms

Your editorial Provident reforms (February 17) has stressed the need for a pension system which will integrate and improve the functioning of the debt and capital market as well as the labour market. Pension is a benefit which gives incentives for retention and attachment to the institution. At the same time pension and provident funds provide for bulk of the investment.

To have a sustainable situation, it may not be enough to take the funds out of government control. It is necessary to ensure that these are properly invested. In an era of scams, it is all the more necessary to have proper guidelines and checks. For this, the investment pattern should be either decentralised or regionalised. Further, PF and pension schemes should be introduced in more areas, with the help of organisations like the LIC.