EPFO to appoint Mercer for investment opportunities

Rao parried queries on the likelihood of EPFO approaching the finance ministry for a bailout and said the details of funds mobilisation would be taken up at the next meeting of the Central Board of Trustees (CBT) in March.

But concerns over the shortfall were evident with the EPFO board on Monday hiring global firm Mercer Human Resource Consulting to suggest more lucrative investment instruments to earn more money on behalf of its four crore account holders.

That raised a hue and cry from the central trade unions — save for Congress-affiliated INTUC — who opposed Mercer’s appointment alleging that its global arm was embroiled in a scam.

They felt that it should have been left to the finance ministry, which approves EPFO’s investments, to take the decision, said CPI(M)-backed CITU leader W.R. Waradharajan.

Waradharajan also opposed the award of the contract, alleging that the norms were relaxed in between the tender process. ‘‘It should have been better if the tender was issued again to ensure transparency,’’ he said. The tender was participated by Deloitte Touche Tohmatu and Watson Wyatt.

Mercer’s report would form the basis for CBT to review its investment patterns, including parking funds in equities, postal deposits and national saving certificates. It has to submit the report within four months of its appointment.

It has to suggest methods for optimising present revenue streams from existing investments, minimise the idle funds and examine the legal issues involved in investment of provident funds in market-risk equities.

The global firm has also to suggest radical changes in the investment patterns for the next 10-15 years, the terms of reference said.