PF and pension funds are long term public debt instruments of the Govt.It is the business of the govt to invest in public goods that will boost the GDP and in turn enable higher tax returns for discharging the public debts. PF and pensions liability is to be discharged from budgetary allocations only.The Govt cannot be seen to indulge in market behaviour as a player when it is simultaneously a regulator.The Govt cannot act as another Mutual Fund operator and invest the hard earned money in risky investments. The poor management of the US-64 scheme is a telling lesson. If paying pensions is assuming a long standing liability then it can offer a cumpolsory commutation of the pension for existing and future pension holders. There are horror stories of people trying to get their monthly pension and it is time that outmoded pension system is laid to rest and replaced by modern old age packages.
