EPF Pension The Modi government at the Centre is preparing to make major changes in the pension scheme of the Employees’ Provident Fund Organisation. The government is seriously considering several proposals. There is a plan to increase the minimum pension of Rs 1,000 currently given to PF holders to a respectable level. Discussions are also being held on giving employees the option to increase their contribution to the EPS fund.
New Delhi. To strengthen social security, proposals are being seriously considered to make the pension of the Employees’ Provident Fund Organization (EPFO) attractive by making major changes in it. In this sequence, the most important proposal is to give the amount deposited in the pension fund to the children of the EPF pensioner and his life partner after their death.
Option to increase contribution also discussed
The Ministry of Labor considers this proposal very important to encourage EPF members to join the pension scheme. The ministry is considering rationalizing the low pension even after a long service period, which also includes a proposal to increase the minimum pension amount of one thousand rupees at present. To strengthen the structure of social security under EPF, the Ministry of Labor is seriously deliberating on giving the members the option to increase their contribution to their EPS fund for higher pension under the EPS-1995 scheme.
Need to address concerns
According to sources, during these consultations related to pension reforms, the need to make the pension scheme related to the Employees’ Provident Fund attractive as well as to address the concerns of its members was mentioned. During the discussions held at the top level, it was clearly stated that a large number of EPF members are in dilemma that their money deposited in the pension fund will not be available back after pension benefits.
Family pension will be available on death
A senior official of the ministry said that the government’s opinion is clear that the amount of pension corpus belongs to its members. In such a situation, to end this dilemma, along with the necessary reforms, it will have to be made clear that they will get pension from the amount deposited in the pension fund and after their death, the husband or wife will get the benefit of family pension. After the death of both, the remaining amount of pension fund will be given to their nominated-dependent children.
Talks of reviewing the minimum amount
The ministry believes that after this major change in the form of EPS, the attraction of its members towards this pension scheme will definitely increase. Regarding the options to rationalize the pension, the official said that both the Ministry of Labor and the Employees Provident Fund Organization are in favor of reviewing the current minimum amount of pension.
It is also being felt necessary that in the context of the decision of the apex court, on one hand people have started getting higher pension under EPF, on the other hand, many people are getting less pension even after working for years. In such a situation, it is necessary to make long service period a factor, so that this pension can be made rational.
At present, only thousand rupees pension is given
The minimum pension under EPF is only one thousand rupees per month and under the reforms, while reviewing it, the possibilities of significant increase are being considered. However, no amount of increase in the minimum monthly pension has been decided, but according to the indications received from the ministry, it is being considered to make it respectable.
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