The government has addressed the demand for revising the minimum pension under the Employees’ Pension Scheme (EPS). Currently, the EPS 1995, administered by the Employees’ Provident Fund Organisation (EPFO), provides a minimum monthly pension of Rs 1,000 to members.
In the Lok Sabha, Member of Parliament Ummeda Ram Beniwal questioned the government on whether it plans to increase the minimum pension amount under the Employees’ Provident Fund. He also sought clarification on the extent to which the pension might be increased and the timeline for such a revision.
Beniwal also sought details about unclaimed provident fund and pension amounts, asking if the government plans to return these funds to employees. Additionally, he asked about the possibility of introducing dearness allowance for pensioners and whether the government would relax norms to include employees of Public Sector Undertakings under the National Pension System (NPS).
Also read: EPFO: Govt to revise pension for EPS pensioners? Here’s what Centre has to say on revised pension plans
Minister of State for Labour and Employment Shobha Karandlaje provided detailed responses, highlighting the challenges and measures being undertaken.
Minimum pension hike under review
The minister said that “with regard to enhancement of minimum pension, it is informed that the Employees Pension Scheme 1995 is a self-funded scheme with contributions @ 8.33 percent of wages from employer and 1.16 percent of wages by Central Government. All benefits under
the scheme are paid out of such accumulations.”
“The fund is valued annually and additional reliefs paid if the position of the fund so permits. Central Government has enhanced minimum pension to Rs 1000/- p.m. by providing budgetary support keeping the widespread demand in view even though there is no provision in scheme for such budgetary support,” the minister further said.
Also read: EPS Update: Rework pension formula and implement enhanced pension immediately, lawmaker to govt
Unclaimed provident fund accounts
The minister confirmed that no unclaimed EPF accounts exist. However, some accounts are classified as “inoperative,” with definite claimants. These accounts hold Rs 8,505.23 crore as of March 31, 2024. In the last three years, claims worth Rs 7,576 crore from inoperative accounts have been settled.
No plans for Dearness Allowance on pension
Linking monthly pensions under EPS to the cost of living index was deemed unfeasible.
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