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Expert Recommendations on Employees™ Pension Scheme

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.

Tags: Employee Provident FundEmploymentEPFEPSGovernmentLok SabhaNational Park ServicePension

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