The Ministry of Finance Considers Increasing Minimum Pension Amount
Government Receives Requests for Increase in Minimum Pension Amount
Minimum Pension Amount to be increased – The Ministry of Finance has received requests from various stakeholders, including trade unions, to increase the minimum pension amount under the Employees’ Pension Scheme (EPS), 1995.
Parliamentary Inquiry
Member of Parliament Asaduddin Owaisi inquired in Lok Sabha about the representations received from pensioners under the Employees Pension Scheme (EPS), 1995, requesting an increase in the minimum pension amount. Minister of State for Finance Pankaj Chaudhary confirmed that stakeholders, including labor unions, have submitted such requests to the Ministry of Labour and Employment.
Owaisi also asked about the government’s evaluation of proposals to raise EPS pensions in light of the 30th report’s conclusions and the Standing Committee on Labour, Textile, and Skill Development’s observations. The minister explained that the EPS, 1995 is a ‘Defined Contribution-Defined Benefit’ Social Security Scheme and that the fund is valued annually, with an actuarial deficit identified in the latest valuation.
In 2014, the central government approved a minimum monthly pension of Rs 1,000 for retirees covered by the EPS of 1995. This was the first time the government provided a minimum pension to pensioners under the EPS, 1995, through budgetary support.
Criteria for Eligibility under EPS
Minister of State for Labour and Employment, Shobha Karandlaje, clarified the eligibility criteria for EPS 95 benefits in response to questions from MPs Sanjay Haribhau Jadhav and Daroga Prasad Saroj.
Who is Eligible for EPS Pension?
An EPS member becomes eligible for superannuation under EPS upon fulfilling the following criteria: (i) Minimum 10 years of eligible service; and (ii) Attaining age of 58 years. Early pension can be availed after completing 50 years of age, subject to a reduction in pension for each year below 58 years.
In the event of a member’s death or disability, a minimum of one month’s contributions is sufficient, with no minimum eligibility service requirements or age restrictions. The Central government provides different minimum pension amounts for various categories of pensioners since September 2014.
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