The issue of increasing the minimum pension under EPS‑95 (Employee Pension Scheme 1995) have time and again come up for discussion. The latest in this regard was asked by Members of Parliament Vaiko and M. Shanmugam.

Government’s response was sought on the following questions by the MPs:

(a) Whether the demand to enhance minimum pension in Employees Pension Scheme (EPS-95) is under consideration of Government for a long time?

(b) If so, by when Government will take a decision, especially in view of mounting pressure from the trade unions and the court judgments?

(c) The constraint in increasing the EPF pension when there are sufficient funds available in the corpus fund and the accumulated unclaimed funds? and

(d) Whether Government would expedite a decision in view of coming festival season?

Minister of State for Labour and Employment Shobha Karandlaje in written reply to a question in Rajya Sabha last week responded that representations have been received from various stakeholders including trade unions and public representatives to increase the minimum pension under the Employees’ Pension Scheme (EPS), 1995 from existing Rs 1000 per month.

Karandlaje said, 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.

However, the Government is providing a minimum pension of Rs. 1000 per month to the pensioners under the EPS, 1995 by providing budgetary support, which is in addition to the budgetary support of 1.16 per cent of wages provided annually towards EPS to Employees’ Provident Fund Organisation (EPFO).

The different categories of pension and withdrawal benefits available under EPS are as under:

– Member Pension upon superannuation at 58 years of age.
– Early Member Pension from age of 50 years.
– Disability Pension on permanent and total disablement during service.
– Widow/Widower Pension on death of Member or Pensioner.
– Children Pension for 2 children at a time till the age of 25 years on death of the member.
– Orphan Pension to 2 orphans at a time till the age of 25 years on death of a member when there is no spouse or on death of spouse.
– Disabled Children/Orphan Pension for the entire life of the disabled child/orphan.
– Nominee Pension on death of member and paid for life to a person duly nominated by the member in case there is no family as defined under EPS, 1995.
– Pension to dependent father/mother upon death of a member provided there is no family or nominee of the member.
Withdrawal benefit on exit from service or on superannuation provided member has not rendered service eligible for pension.

EPS-95, the mandatory scheme entitles the employees working in organized sector to receive benefits of pension after attaining the age of 58 years or premature death.