EPS 95 Minimum Pension Hike: No: Pension.I/Misc/2020/Agitation Dated: 03.05.2021
National General Secretary
Employees Pension 1995 Co-ordination Committee
Sub:- Humble request to Hon.Shri Apurva Chandraji ,Internatonal Labour Organisaton Chairman, Email with Video Speech link to help EPS 95 Pensioners without any Delay in Covid 19 Pandemic with second wave.-regarding.
Please refer to above cited subject.
In this regard the mater has been examined and the comments of EPFO are submited as below:
(i) With regard to enhancement of minimum pension, it is stated that the Employees Pension Scheme 1995 is a self funded scheme with contributions @ 8.33% of wages from employer and @1.16% of wages by Central Government. All benefts under the scheme is paid out of such accumulations. The fund is valued annually and additional reliefs paid, if the position of the fund so permits. In the year 2000, the pension fund ran into deficit and no additional reliefs could be paid thereafter. In spite of this fund deficit, the Central Government has enhanced minimum pension to Rs. 1000/- p.m. with effect from 01.09.2014 by providing budgetary support keeping the wide spread demand in view even though there is no provision in scheme for such budgetary support. It is not possible to increase pension amount further without compromising the financial viability of the Scheme.
With regard to linkage of pension under EPS, 1995 with Dearness Allowance (DA), it is informed that the issue of index linking of pension by fully neutralizing infaton was considered by the Expert Committee constituted by the Central Government in the year 2009 for review of EPS, 1995 and the same was found not feasible in the case of a funded scheme like Employees’ Pension Scheme, 1995. In Employees’ Pension Scheme, 1995 the contribution of the employer and Government is at a fixed rate of 8.33% and 1.16%. Therefore, the value of benefits cannot be lef open ended by linking with infaton as infaton is variable. Therefore, to ensure the sustainability and viability of defend contribution and defend benefits schemes like EPS, 1995 feasibility of providing such benefit is required to be kept in view.
(ii) Further regarding revision of pension on higher wages, it is hereby informed that since the pension fund is in actuarial deficit to the tune of Rs.15,531 Crores (as on 31.03.2017), it is not financially feasible to increase the benefts payable under the scheme. Furthermore, as the matter of revision of pension on higher wages is currently sub-judice, further decision is this matter shall be taken on finalization of the court proceedings.
This is for your information please.
Regional P.F. Commissioner-I (Pension)