Government proposes to increase the minimum pension for EPF pensioners?

Government proposes to increase the minimum pension for EPF pensioners?

GOVERNMENT OF INDIA

MINISTRY OF LABOUR AND EMPLOYMENT

LOK SABHA

STARRED QUESTION NO: 23

ANSWERED ON: 24.06.2019

EPF Pension

N.K. Premachandran

Will the Minister of

LABOUR AND EMPLOYMENT be pleased to state:-

(a)whether the Government has received report from the Committee appointed for study of the issues of EPF pensioners and if so, the details thereof; 

(b)the details of the recommendations of the said Committee;

(c)whether the Government has initiated action for implementation of the recommendations of the said Committee and if so, the details thereof; 

(d)whether the Government proposes to increase the minimum pension for EPF pensioners and if so, the details thereof; and 

(e)whether the Government also proposes to stop the realisation of amount from the pension on account of commutation of pension after realising the commuted amount and if so, the details thereof?

ANSWER

MINISTER OF STATE (IC) FOR LABOUR AND EMPLOYMENT

(SHRI SANTOSH KUMAR GANGWAR)

(a) to (e): A statement is laid on the Table of the House.

STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (e) OF LOK SABHA STARRED QUESTION NO. 23 TO BE ANSWERED ON 24.06.2019 BY 

SHRI N.K. PREMACHANDRAN REGARDING EPF PENSION.

(a) & (b): Yes, Sir. The Committee appointed for Evaluation and Review of the Employees’ Pension Scheme, 1995, headed by Additional Secretary, Ministry of Labour and Employment has submitted the report on 21st December, 2018. The report inter-alia has given observations/ recommendations on the following issues:

Increase of Minimum Monthly Member Pension

Period over which the Average Pensionable Salary is calculated

Restoration of commuted value of pension

Re-introduction of the provision for commutation of pension

Restoration of the provision of Return of Capital

Linking the monthly pension with cost of living index

Issues of payment of pension on higher/actual wages to employees of exempted establishments.

As far as pension on higher wages is concerned, the issue is sub-judice.

(c): The consultation process on the recommendations/observations on the Committee’s report has been initiated with Employees’ Provident Fund Organisation (EPFO) and Central Board of Trustees (CBT). CBT is a tripartite body representing trade unions, employers besides representatives of Central and State Governments.

(d): The decision on increase of minimum pension for EPF is dependent on the outcome of the consultation process and has impact on Budgetary resources of the Government as the Committee has recommended that increase in pension has to come from the Budgetary resources.

(e): No decision has been taken to restore the commuted value of pension, as it has implications on sustainability of the funds under Employees’ Pension Scheme, maintained by EPFO.

Source: LOK SABHA