Sign In
By signing in or creating an account, you agree with Associated Broadcasting Company's Terms & Conditions and Privacy Policy.
By signing in or creating an account, you agree with Associated Broadcasting Company's Terms & Conditions and Privacy Policy.
New Delhi: For the last several years, lakhs of EPS-95 pensioners have been demanding that their minimum pension be hiked from the existing Rs 1,000. Along with this, they are also demanding Dearness Allowance (DA), family pension and free medical facilities. In rising inflation, it has become very difficult for the elderly to survive with a pension of Rs 1,000.
Recently this issue was raised in Parliament. In the Lok Sabha, a parliamentarian asked the government why there was a delay in raising the minimum pension under EPS and why it is taking so long to implement the orders related to pension fixation of the Supreme Court. In response to this, the Ministry of Labour and Employment explained its position in detail.
The government said that the minimum pension under EPS-95 is Rs 1,000 per month, which was fixed in the year 2014. At that time, the government had ensured that no pensioner received any less amount by providing budgetary assistance. But after this, inflation continued to rise and there was no increase in the amount of pension. EPS pension is neither linked to Dearness Allowance nor to Cost of Living Index.
The ministry also explained that EPS is a social security scheme based on the funds deposited. In this, the employer deposits 8.33% of the employee's salary and the government contributes 1.16%, that too up to a maximum salary of Rs 15,000. Pension and all other benefits are given from this fund.
According to the government, there is a serious financial deficit i.e. actuarial deficit in the EPS fund. As of 31st March 2019, it is clear in the data that it is not possible to pay such huge pension hikes or dearness allowances for the amount of money in the fund. The government said that additional budgetary help is already being given to ensure a minimum pension of Rs 1,000.
A high-level committee had examined the issue of linking EPS pension with dearness allowance. The committee's report said that considering the condition of the existing funds, it is not practical to give DA or link pension to inflation. This is the reason why further decisions could not be taken on this demand.
The government also said that the process of implementing the orders of the Supreme Court relating to fixing pensions on the basis of high salary is underway. For this, an online application facility was provided, in which millions of pensioners and employees have applied. The process of investigation of a large number of cases and confirmation from employers is still ongoing.
The government mentioned the problems and progress so far, but did not provide a clear deadline for reducing the EPS minimum pension to 7,500 rupees, granting DA or adding medical facilities. In such a situation, the wait for EPS-95 pensioners still lingers.
(Disclaimer: EPS-95 Pensioners' demands: Minimum Hike, DA, Medical Benefits; What Govt said)
