The Employees Pension Scheme (EPS) 1995 is a defined contribution-defined benefit social security scheme.
New Delhi. The Central Government on Monday said that the scheme of increasing the minimum monthly pension under the Employees ‘Pension Scheme, 1995 (Employees’ Pension Scheme, 1995: EPS-95) is not possible without compromising its financial viability or without additional budgetary support. Labor Minister Santosh Gangwar said in a written reply in the Lok Sabha that the government has constituted a high-level monitoring committee for the overall evaluation and review of EPS-1995. This committee has recommended an increase in monthly pension if certain conditions are met.
Gangwar stated that it is not possible to increase the minimum monthly pension without compromising the financial viability of the scheme and / or additional budgetary support. The Government has for the first time started providing a minimum pension of Rs 1,000 per month to pensioners under EPS-1995 from September 1, 2014 by providing additional budgetary support keeping in view the wide demand, although there is no provision for budgetary support in the scheme. Is not.
The minister also said that the Employees Pension Scheme (EPS) 1995 is a defined contribution-defined benefit social security scheme. As per the provision of the scheme, pensioners are paid pension from a pulled account, in which 8.33 percent contribution (statutory limit Rs 15,000 per month) is paid by the employer on behalf of the employee and 1.16 percent contribution (up to Rs 15,000) It is done by the central government on behalf of the employee.
The Minister stated that the amount of pension received by the member is decided on the basis of the duration of service and the salary on which the member contributes to the pension fund. Employees’ unions are pressurizing the government for a minimum monthly pension under EPS-95. Initially he demanded a pension of Rs 3000 per month under the scheme. Later he started demanding to increase the minimum monthly pension to Rs 5000 or more.
Pension under EPS-95 is not linked to index or inflation and remains constant throughout. The EPS-95 scheme is administered by the Employees Provident Fund Organization (EPFO).
