Subscribers of the retirement fund body EPFO
may soon get a minimum monthly pension of Rs 1,000 after
superannuation, if a proposal in this regard is cleared by the Finance
Ministry.
"Labour Ministry has recently sent a proposal to the Finance Ministry
to fix minimum pension to the EPFO subscribers at Rs 1000, no matter
what their contribution is towards the scheme," a source privy to the
development said.
On the recommendations of the Employees Provident Fund Organisation (EPFO), the Labour Ministry
has proposed to the Finance Ministry to either withdraw the two year
bonus given to subscribers on completion of 20 years of service or bear
additional burden of Rs 539 crore every year for fixing minimum pension
of Rs 1,000.
At present every subscribers who completes 20 years
of service is given benefit of additional two year bonus while
tabulating his or her pension.
According the the EPFO, if this
two year bonus is withdrawn, the exercise of fixing minimum pension at
Rs 1,000 would be a revenue neutral exercise besides pensioners getting
about 5 per cent relief.
However, if the Finance Ministry does
not go for this alternative, the government would have to shell out Rs
539 crore every year in addition to its existing payout of Rs 994 crore
annually for contributing 1.16 per cent of basic pay and DA to the
pension fund.
According to data, as on March 31, 2010, there were
35 lakh EPFO pensioners of which 14 lakh get a monthly pension of less
than Rs 500.
The number of EPFO pensioners getting a monthly
pension of Rs 1,000 is 7 lakh. The data reveals there are cases where
pensioners are getting a monthly pension as low as Rs 12 and Rs 38.
Link to article - http://articles.economictimes.indiatimes.com/2012-08-20/news/33288005_1_minimum-pension-epfo-pensioners-retirement-fund-body
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