Employees Pension Scheme (EPS) minimum monthly pension of Rs.1000/-

Employees Pension Scheme (EPS) minimum monthly pension of Rs.1000/- 

1856 SHRI M. SHANMUGAM

Will the Minister of Labour and Employment be pleased to state:

(a)the minimum monthly pension for a retired employee since when the Employees Provident Fund (EPF) pension scheme was started;

(b)the reason for not increasing the minimum monthly  pension despite increase in cost of living and higher inflation;

(c)whether demands have come for increasing minimum monthly pension from various quarters including trade union organisations;

(d)if so, the response of Government thereto; and

(e)by when the minimum pension would be increased to ₹ 9000, as demanded by various trade unions, the details thereof?

(SHRI SANTOSH KUMAR GANGWAR)

(a): The provision of minimum monthly pension of Rs.1000/- under Employees’ Pension Scheme (EPS), 1995 was introduced with effect from 01-09-2014 by providing budgetary support keeping the widespread demands even though there was no provision in the Scheme for such budgetary support.

(b): The Employees’ Pension Scheme (EPS), 1995 has been designed on the principles of a “Defined Contribution-Defined Benefit” Social Insurance Scheme and adopts “actuarial principles” for ensuring long term financial viability. As such, there is no provision in the Scheme for budgetary support. However, Government is already providing  budgetary  support  for   providing   minimum   pension   of Rs. 1000/-.

(c) to (e): Representations have been received from various stakeholders for increase of minimum pension under the Employees’ Pension Scheme (EPS), 1995. The Scheme (EPS), 1995 has been designed on the principles of a “Defined Contribution-Defined Benefit” Social Insurance Scheme and adopts “actuarial principles” for ensuring long term financial viability. It is not possible to increase minimum monthly pension amount without compromising the financial viability of the Scheme and/or additional budgetary support. Government constituted High Empowered Monitoring Committee (HEMC) has recommended enhancement of monthly pension with some proviso.