EPFO Pension Alert! Will Govt Enhance Minimal Pension Quantity EPF Scheme? Verify What FinMin Stated | Private Finance Information

New Delhi: Worker unions have lengthy advocated for growing the minimal pension quantity beneath the Staff’ Pension Scheme (EPS), 1995, with representations from workers and different stakeholders.

Relating to a rise within the pension quantity, Member of Parliament Asaduddin Owaisi raised questions within the Lok Sabha about any proposal to extend the minimal pension quantity beneath EPS, 1995. He requested about any pensioner representations beneath EPS, 1995, requesting a rise within the minimal pension quantity and looking for particulars of the proposed proposal.

Pankaj Chaudhary, Minister of State for Finance, acknowledged that the Ministry of Labour and Employment has obtained representations from stakeholders, together with commerce unions, requesting a rise within the minimal pension quantity beneath the EPS.

Owaisi inquired concerning the authorities’s evaluation of representations to extend EPS pensions, primarily based on the statement by the Standing Committee on Labour, Textile and Talent Growth’s thirtieth report, and its findings.

In his reply, the minister stated, “the EPS, 1995 is a ‘Outlined Contribution-Outlined Profit’ Social Safety Scheme. The corpus of the Staff’ Pension Fund is made up of (i) contribution by the employer @ 8.33 per cent of wages; and (ii) contribution from Central Authorities by means of budgetary assist @ 1.16 per cent of wages as much as an quantity of Rs 15,000/- per 30 days. All advantages beneath the scheme are paid out of such accumulations. The fund is valued yearly as mandated beneath paragraph 32 of the EPS, 1995 and as per the valuation of the fund as on 31.03.2019, there may be an actuarial deficit.”

The parliamentarian inquired concerning the authorities’s intentions to allocate funds for a rise in pension beneath the EPS, 1995, and in that case, the explanations behind this choice.

The Minister replied, “Authorities, for the primary time, within the 12 months 2014, offered a minimal pension of Rs 1000 per 30 days to the pensioners beneath the EPS, 1995 by offering budgetary assist, which was along with the budgetary assist of 1.16 per cent of wages offered yearly in the direction of EPS to Staff’ Provident Fund Group (EPFO).”

Minimal pension of Rs 1,000 beneath EPS95

The central authorities introduced a minimal pension of Rs 1,000 per 30 days for pensioners beneath EPS, 1995 in September 2014. Nevertheless, the labour ministry proposed doubling the pension to Rs 2,000 per 30 days beneath EPS-95, however it was not authorized.