Measures for pension beneficiaries under EPF
GOVERNMENT OF INDIA
MINISTRY OF LABOUR AND EMPLOYMENT
RAJYA SABHA
UNSTARRED QUESTION NO-1966
ANSWERED ON-13.05.2015
Measures for pension beneficiaries under EPF
1966 . Dr. Satyanarayan Jatiya
Will the Minister of LABOUR AND EMPLOYMENT be pleased to state the measures taken by Government to meet the demands of pension beneficiaries under the Employees” Provident Fund Pension Scheme, 1995 for increasing minimum pension to a respectable level of Rs. 3000 for better standard of living and provision for Dearness Allowance as per price index and fixation of pension on the basis of total length of service?
ANSWER
MINISTER OF STATE (IC) FOR LABOUR AND EMPLOYMENT
(SHRI BANDARU DATTATREYA)
As per the provisions contained in the Employees’ Pension Scheme (EPS), 1995, pension to employees who joined on or after 16.11.1995 is calculated on the basis of pensionable service and pensionable salary. EPS, 1995 is a largely self-funded scheme with combined features of “Defined Benefit” and “Defined Contribution.” Accordingly, the Scheme describes the rate of contribution payable as well as the scale of benefits admissible. Para 32 of the EPS, 1995 provides for annual valuation of Employees’ Pension Fund by a Valuer appointed by the Central Government. Based on the results of such valuations and health of Employees’ Pension Fund and to ensure the sustainability and viability of EPS, 1995, actuarial impact on the Scheme due to any increase in benefit is required to be kept in view. Therefore, providing a minimum pension of Rs. 3,000/- to lakhs of existing pensioners and crores of prospective pensioners has very huge financial implications and could jeopardize the existence of the Pension Fund itself.
However, Government vide notification No. GSR 593 (E) dated 19.08.2014 implemented the provision of minimum pension of Rs.1,000/- per month with effect from 01.09.2014 for the financial year 2014-15 by providing budgetary support keeping in view the interest of the most vulnerable sections. The Union Cabinet in its meeting held on 29.04.2015 has approved the continuation of minimum pension of Rs. 1,000/- per month in perpetuity under EPS, 1995 beyond 2014-15 with certain conditionalities.
Further, index-linking of pension, i.e., increase in pension to fully neutralize inflation was considered by the Expert Committee constituted by the Government to review EPS, 1995, and the same was found not feasible through a funded scheme like EPS, 1995 wherein the contribution of employer and Government is at a fixed rate of 8.33 per cent and 1.16 per cent.
Ashoka BG says
Enhancement of EPF 1995 to Rs. 3000/- Bandaru Dattatreya is not responding Sri. Modi is the only Hope we are ageing day by day shall it happen
SIVASANKAR says
what about EPF 1995 pensioners health cards. There is 40 crores rupees lysing under EDLI why dont you provide health cards for atleast Rs. 200000 per annuam for the old age pensioners of EPF 1995 Pl consider us as an Indian poor people
SIVASANKAR says
sir, minimum pension of Rs.3000 under EPF 1995 with DA has been recommended by Sri Jayadevkar and Sri Bhagath Singh koshiyare that committee reports were not implemented what about Rs.44,000 crore unclaimed fund of EPF amount. Is one family can live with 1000 why dont increase minimum pension Rs.3000/-
Pradip Chakraborty says
Myself is Pradip Chakraborty who had been working with East India Pharmaceutical Works Limited in the capacity of the Secretary to the Managing Director since last 17 years had retired from service on 31/01/2012, is getting a meagre pension of Rs. 1620/- only from 1st January, 2010 (58 years) in these present hard days, but till date, not even a single Rupee had been increased – hence, it seems to me that being a senior citizen aged 64+ it is a disgraceful for us and as such I urge to the Central Government, the Hon’ble Prime Minister and the Hon’ble L:abour Minister to consider the case like us sympathetically so as to revise the rate of EPF Pension at least in the tune of Rs. 5000/- for our survival, considering the present price hike day by day by leaps and bounds.
KBS NEGI says
The PSU retirees find their unlimited woes as there is no care by the Govt. EPF pension amounts are the big joke.Govt.is axing down the interest rates with no control on commodity price rise and the cost of living is going high day by day. There are no social security schemes. We can only pray, beg that some relief should be provided to psu,pvt and other citizens. Only caring and blessing central Govt employees is not enough.