An Expert Committee constituted by the Government to review the Employees™ Pension Scheme (EPS), 1995, has, inter alia recommended either of the two options below:
(i) Introduction of Provident Fund-cum-Pension Annuity Scheme wherein pension is linked to accumulations of members in the Fund
or (ii) Modifications in the existing EPS, 95 such as:
- increase in wage ceiling from Rs. 6500/- to Rs. 10,000/-;
- provision of annual relief of 3%;
- a minimum pension of Rs. 1000/- to all categories of pensioners;
- Following modifications in EPS, 1995 to offset the cost of above benefits as much as possible:
- Pensionable Salary to be calculated as an average of last 3 years of service.
- Withdrawal option to be deleted.
- Bonus of 2 years to be disallowed
- The age of superannuation to be raised to 60 years; and
- The age for early pension to be raised to 55 years
- Nominee pension to be disallowed.
The report of the Expert Committee was forwarded by the Government for consideration of Central Board of Trustees (CBT), Employees™ Provident Fund (EPF). The CBT, EPF considered this report in its 190th meeting held on 15.09.2010 and decided that the report be first considered by Pension Implementation Committee (PIC), a sub-Committee of Central Board of Trustees (CBT), Employees™ Provident Fund (EPF). The recommendation of the Expert Committee was considered by PIC, which inter-alia recommended that a minimum monthly pension under Employees™ Pension Scheme, 1995 be increased to Rs. 1000/- per month as an interim measure. The recommendation of the PIC was considered by CBT, EPF. However, the discussion remained inconclusive. A proposal for providing minimum pension of Rs. 1000/- under EPS, 1995 is under consideration of the Government.
This information was given by Minister of State for Labour & Employment Shri Kodikunnil Suresh in the Lok Sabha in reply to a written question.