EPFO Perverted Reply to General Secretary EPS 95 Pension Coordination Committee:
EPFO has given a stereotyped reply without any responsibility on Eps 95 Pensioners.
National General Secretary
Employees Pension 1995 Co-ordination Committee
Sub:- Humble request to Hon.Shri Apurva Chandraji, International Labour Organisation 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 the above-cited subject.
In this regard, the matter has been examined and the comments of EPFO are submitted 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 benefits under the scheme are 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 the minimum pension to Rs. 1000/- p.m. with effect from 01.09.2014 by providing budgetary support keeping the widespread demand in view even though there is no provision in Scheme for such budgetary support. It is not possible to increase the pension amount further without compromising the financial viability of the Scheme.
With regard to the linkage of pension under EPS, 1995 with Dearness Allowance (DA), it is informed that the issue of index linking of pension by fully neutralizing inflation 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 the 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 left open-ended by linking with inflation as inflation is variable. Therefore, to ensure the sustainability and viability of defined contribution and defined 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 of 31.03.2017), it is not financially feasible to increase the benefits payable under the scheme. Furthermore, as the matter of revision of pension on higher wages is currently sub-judice, a 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)
Some Comments of Contributor
If the EPFO / Government opinion continues like this, Eps 95 Pensioners will be forced to opt NOTA in the polling.
If the Higher Pension Decision is sub-judice, what is the problem in hike of Minimum Pension.
Why delay to increase Minimum Pension?
The government-appointed Koshiyari Committee Report was set aside without implementation.
All categories of people in the country are somehow receiving government welfare schemes except for one Eps 95 Pensioners.
Please comment on the above EPFO Reply in the Comment Section of this Article