EPFO News: Employee unions have been raising the demand for a long time for an increase in the minimum pension amount under the Employees’ Pension Scheme (EPS), 1995. In this regard, representations have also been made from the employees’ side as well as by other stakeholders.
In the latest development, Asaduddin Owaisi, Member of Parliament, has raised queries in the Lok Sabha regarding any proposal to increase the minimum pension amount under EPS, 1995.
The lawmaker asked if the government has received any representations from pensioners under the EPS, 1995, requesting an increase in the minimum pension amount. He also sought details of the proposal, if any, before the government.
Responding to the queries, Pankaj Chaudhary, Minister of State for Finance, said that the Ministry of Labour and Employment has informed that representations have been received from various stakeholders including trade unions requesting increase in the minimum pension amount under the EPS.
Owaisi also asked whether the government has conducted any assessment of these representations to increase the EPS pensions, particularly in the light of the observations made by the Standing Committee on Labour, Textile and Skill Development in its 30th report, and if so, the findings of such assessments.
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The minister, in his reply said that “the EPS, 1995 is a ‘Defined Contribution-Defined Benefit’ Social Security Scheme. The corpus of the Employees’ Pension Fund is made up of (i) contribution by the employer @ 8.33 per cent of wages; and (ii) contribution from Central Government through budgetary support @ 1.16 per cent of wages up to an amount of Rs 15,000/- per month. All benefits under the scheme are paid out of such accumulations. The fund is valued annually as mandated under paragraph 32 of the EPS, 1995 and as per the valuation of the fund as on 31.03.2019, there is an actuarial deficit.”
In one of his queries, the parliamentarian asked that whether the government is considering to provide financial resources to facilitate an increase in the pension under the EPS, 1995; and if so, the details thereof and if not, the reasons therefor.
The Minister of State for Finance replied, “Government, for the first time, in the year 2014,
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