In July this year, the labour ministry had rejected ONGC's application for exemption from the EPS 1995, as the Employees Provident Fund Organisation had pointed out deficiencies in the scheme.

EPFO had noted that ONGC's alternative, unlike the EPS, was to be funded entirely from the employee's contributions. Also, it excluded casual and contract labour and offered the benefits to those who reach 60 years of age against 58 under EPS. Importantly, the scheme does not specify what will happen to the employee's contributions if he quits before retirement age.

Under the EPS 1995, a portion of the employer's contribution to provident fund is set aside to create a pension fund. However, a company can offer its own scheme if it is superior to the EPS.

On July 19 this year, labour ministry under secretary JP Shukla had written to ONGC's general manager personnel, pointing out deficiencies in the scheme.ONGC then sent another application to the labour ministry, on August 9, and its parent ministry sent a memorandum to the labour ministry on August 13.Following this, labour's Shukla replied to the petroleum ministry that since no changes have been incorporated in ONGC's scheme to remove the deficiencies, "the question of re-consideration of the request for exemption in respect of ONGC does not arise."

In the memo, to under secretary NZ Zakhup, Shukla said "As the EPS 1995, is of compulsory and statutory nature, the ONGC may kindly be advised to report compliance under the EPS to the concerned RPFC (regional provident fund commissioner)] without any further delay." ONGC sources said that its ministry had written to the personnel director last month, asking ONGC to comply with the EPS 1995, but no action has yet been taken to comply with the order. The deductions under the alternative scheme (self contributory, post- retirement and death in service benefit scheme) are continuing till date.

ONGC's alternative, called the PRBS, was introduced in 1998 with a retrospective effect from 1995, and will cover the 23,000 non-executive employees.

ONGC's official spokesperson could not be reached for his comments. Personnel director Jauhari Lal was busy in a meeting when contacted on Thursday afternoon, according to his office.

The pension scheme has been in the eye of a controversy and questions were raised about it in the Rajya Sabha last March, and some members of Parliament have written to the Prime Minister seeking his intervention.