The labour ministry's proposal to raise the statutory wage ceiling for provident fund contributions should be turned down. Employees who earn more need choice to grow their retirement nest, not greater mandated savings in the Employees Provident Fund Organisation that has to discover black holes in its accounts, year after year, from which to dig up hidden goldto produce an acceptable rate of return for its members. Raising the wage ceiling would also increase the government's subsidy outgo on the EPFO's pension scheme. Instead, the government should allow workers to voluntarily switch to the National Pension System (NPS), which has the institutional framework to allow individual members to choose their fund manager and allocation across asset classes.
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