Recommendations on EPS
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; and
• 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 today in reply to a written question.