UNSTARRED QUESTION NO: 207

ANSWERED ON: 18.07.2022

EPS-95 Scheme

Rajmohan Unnithan
Will the Minister of LABOUR AND EMPLOYMENT be pleased to state:-

(a) whether it is a fact that 30 lakhs of eligible pensioners have not yet received the minimum pension of Rs.1,000 even since introduction of the term PF Pension;

(b) whether the Government has taken steps to review and revise the EPS-95 scheme every ten years and if so, the details thereof and if not, the reasons therefor;

(c)whether the Supreme Court has constituted a three-member bench to inquire into the non-payment of pensions to the retiring workers and if so, the details thereof; and

(d)whether the Government is working on a comprehensive revision of the PF pension and if so, the details of the plan to implement the same in near future?

ANSWER

MINISTER OF STATE FOR LABOUR AND EMPLOYMENT
(SHRI RAMESWAR TELI)

(a): No, Sir.

(b): The Employees’ Pension Scheme (EPS), 1995 has been framed by the Central Government in accordance with the powers conferred by section 6A of the Employees’ Provident Funds and Miscellaneous Provisions (EPF and MP) Act, 1952. The EPS, 1995 came into force on 19.11.1995. Review and revision of schemes is an ongoing process. The provisions of the EPS, 1995 have been reviewed from time to time based on the recommendations of the Expert Committee and the High Empowered Monitoring Committee as well as taking into account the actuarial evaluation of the Employees’ Pension Fund. Some of the important amendments made in EPS, 1995 are as under:

• (i) Increase in wage ceiling from Rs. 6500/- to Rs.15000/- per month from 01.09.2014.
• (ii) Provision of a minimum pension of Rs. 1000 per month to the pensioners under EPS, 1995 from 01.09.2014 by providing additional budgetary support wherever the pension was falling short of Rs.1000 as per pre-defined formula for calculation of pension.
• (iii) Restoration of normal pension after completion of fifteen years from the date of such commutation, in respect of those members who availed the benefit of commutation of pension under the erstwhile paragraph 12A of the EPS, 1995, on or before 25.09.2008 vide notification G.S.R.132(E) dated 20.02.2020.

(c): The Union of India and the Employees’ Provident Fund Organisation (EPFO) have challenged the judgement dated 12.10.2018 of Hon”ble Kerala High Court, which set aside the 2014 amendments to the EPS-95, in the Hon’ble Supreme Court. The Hon’ble Supreme Court vide its order dated 24.08.2021 in Special Leave Petition (C) Nos.8658- 8659 of 2019 and other connected cases directed to refer the matters to a Bench of at least three Judges. The matter is now sub-judice.

(d): The Code on Social Security, 2020 (36 of 2020), was notified on 29.09.2020, which subsumes 9 Central labour laws including the EPF and MP Act, 1952. Section 15 of the new Code envisages to frame various schemes including pension for the employees and their family members. However, the said Code has yet to come into force.

Lok Sabha

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The pension shall be credited on the 1st working day of the month in which they are due, or no later than the 5th working day of the month.

EMPLOYEES PROVIDENT FUND ORGANISATION
MINISTRY OF LABOUR & EMPLOYMENT, GOVERNMENT OF INDIA
Head Office
Bhavishya Nidhi Bhawan, 14, Bhikayji Cama Place, New Delhi-110066

E file: 42761

Dated: 13.01.2022

TO,
All Addl. CPFCs, ZO
All RPFC-I /OICs, ROs

Sub: Payment of Pension to EPS 95 pensioners on the last working day of the month.

Ref: RBI Circulars dated 17.03.2016 and 01.07.2020.

Madam / Sir,

EPFO has executed agreements with numerous pension disbursing banks for credit of pension to its pensioner. Current bank agreement with pension disbursing banks states that:

“Pension will be credited on the 1st working day of the month to which the pension relates or in any case not later than 5th day of the month’.

However, it has been observed that payment of pension to pensioners are not credited in the account on due date as a result of which EPS pensioners face difficulties.

Further, RBI regularly issues guidelines / directions to pension disbursing agencies for crediting pension by these banks (referred above). The manual provisions on pension disbursement by EPFO has by and large been modeled on RBI circulars issued from time to time.

The matter has been reviewed by Pension Division and keeping in line with RBI instructions, it has been decided that all field offices may send the monthly BRS to banks in such a way that pension gets credited to pensioners account on or before last working day of the month (except for the month of March that shall continue to be credited on or after 1st April). Further, it may simultaneously be ensured that actual pension is sent to pension disbursing banks not earlier than two days before it is to be credited in pensioners’ accounts.

Accordingly, while taking note of the above instructions for strict compliance, all offices are advised to issue necessary guidelines / directions to pension disbursing banks under their respective jurisdiction to ensure proper implementation of the above.

[This issues with the approval of CPFC. ]

Yours faithfully,

(Vishal Agarwal)
Regional P. F Commissioner-I (Pension)

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Digital Pramaan Patra

Ministry of Labour & Employment

EPFO to allow EPS pensioners to submit their Digital Pramaan Patra at any time during the year as per their convenience

Goa EPFO to collect life certificate from home for bedridden pensioners

06 NOV 2020
Goa, 6 November 2020

In the present scenario of COVID-19 Pandemic, Employees Provident Fund Organization desires that all the Pensioners should stay safe and stay at home in the prevailing Pandemic situation. Therefore, EPFO has proactively partnered with Common Service Centre( CSC) to provide facilities to submit Digital Jeevan Pramaan Patra. Further Post offices have also started collection of Digital Jeevan Pramaan. A multi- agency model adopted by EPFO empowers EPS pensioners with choice and autonomy to select the service delivery agency as per their convenience.

In this regard, a key policy change has been brought by EPFO to allow EPS pensioners to submit their Digital Pramaan Patra at any time during the year as per their convenience and not just during the months of November & December. The Life Certificate will remain valid for One year from the date of submission. For example, The Digital Life Certificate submitted in November/ December 2019 is valid for release of monthly pension for one year i.e up to November / December 2020, respectively. This pro -pensioner step has been taken to provide hassle free Social Security cover to EPS pensioners.

EPS Pensioners are hereby requested to avoid visiting PF Offices and instead submit Aadhar based Biometric Digital Life Certificate for Jeevan Pramaan Patra at respective Bank branches, nearest Post Offices or at Common Service Centers, for details about nearest Common Service Centre use link https://locator.esecloud.in. Pensioners only need to carry their mobile, Bank pass book, Pension Payment Order number and Aadhar number. They can also avail this service by contacting their local Postman/ Nearest Post Office. There are 254 post offices and 100 Common Service centers all over Goa providing services of Jeevan Praman Patra.

For bed ridden pensioners or those suffering for infirmity, Goa Office shall make arrangement to collect Life Certificate from their home for availing such facility, Pensioner/his her family members should send a request through email at ro.goa@epfindia gov.in with complete details.

Therefore, EPFO strongly advises the pensioners to visit their Pension disbursing Banks, nearest Post Offices, Common Service Centers to submit the Digital Life Certificate/ Jeevan Pramaan Patra, in this COVID-19 Pandemic situation in order to stay safe.

Source: PIB

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Ministry of Labour & Employment
CPFC Directs to Ensure Credit of Pension to EPS Pensioners by 30th March

26 MAR 2020

EPFO makes payment of pension to 65 lakh pensioners every month under the Employees pension Scheme, 1995.

Central Provident Fund Commissioner (CPFC) had directed to process pension payments in all 135 offices of EPFO in advance so that no inconvenience is caused to pensioners on account of nationwide lock down for containing Covid-19 outbreak.

EPFO officers and staff worked with dedication under most difficult circumstances but completed the processing of pension payments in all 135 offices and provided pensioner wise pension payment details for 65 lakh pensioners alongwith requisite cheques to all pension disbursing banks. Link nodal branches of all pension disbursing banks throughout India have been directed to ensure credit of pension in the accounts of pensioners by 30th March, 2020. Thus timely credit of pension at this hour of need has been ensured by all 135 field offices. EPFO is committed to serve its pensioners at all times.

PIB

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The current condition does not cause the pensioners any inconvenience EPFO to generate and reconcile details of pensioners and statement of pension amounts by 25 March 2020 for the current month.

Ministry of Labour & Employment

EPFO issues Directions for timely credit of monthly Pension to EPS Pensioners

23 MAR 2020

EPFO is disbursing monthly pension to more than 65 Lakh pensioners every month under the Employees’ Pension Scheme, 1995.

Also check: Relaxation in CCS Leave rules 1972 for central government employees – COVID19 – Latest DoPT Orders 2020

Due to the corona virus pandemic, lock down has been declared in various parts of the country. In order to ensure that no inconvenience is caused to the pensioners on account of the prevalent situation, Central Provident Fund Commissioner has directed the field offices of EPFO to generate and reconcile pensioners’ details and pension amount statements for the current month by 25th March, 2020. He further directed that the same should be forwarded to the banks in advance so that the monthly pension is credited into the account of the pensioners in time i.e. during the month of March itself.

PIB

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Ministry of Labour & Employment
Employees’ Pension Scheme (Amendment) Scheme, 2020

16 MAR 2020

Representations have been received from individual Employees’ Pension Scheme (EPS), 1995 pensioners as well as various pensioners associations raising issue of amendments in EPS, 1995 as well as demands, inter-alia, regarding enhancement of minimum monthly pension and restoration of commuted value of pension.

Considering the demands of EPS, 1995 pensioners, the Government had constituted a High Empowered Monitoring Committee for complete evaluation and review of EPS, 1995. Based on Committee’s recommendation, the Government vide Notification G.S.R. No. 132(E) dated 20.02.2020 has notified decision to restore normal pension after completion of fifteen years from the date of such commutation, in respect of those members who availed the benefit of commutation of pension under the erstwhile paragraph 12A of this Scheme, on or before the 25th day of September, 2008.

The State / UT-wise details of number of employees enrolled under EPS, 1995 at present are at Annexure I.

Annexure I

State / UT-wise details of number of employees enrolled under EPS, 1995

The State/UT-wise details of the amount distributed under EPS, 1995 during each of the last three years including the current year are at Annexure II.

Also check: MACP – MODIFIED ASSURED CAREER PROGRESSION SCHEME FOR THE CENTRAL GOVERNMENT CIVILIAN EMPLOYEES ORIGINAL ORDER DATED MAY 2009

Annexure I

State / UT-wise details of the amount (in Rs.) distributed under EPS, 1995

This information was given by Shri Santosh Kumar Gangwar Union Minister of State (I/C) for Labour and Employment in written reply to a question in Lok Sabha today.

PIB

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Ministry of Labour & Employment
Hike in Pension

25 NOV 2019

Government of India in February, 2019 launched Pradhan Mantri Shram Yogi Maan-dhan (PM-SYM), a voluntary and contributory pension Scheme, for the benefit of unorganized workers, as per eligibility. The scheme assures minimum monthly pension of Rs. 3000 to the beneficiaries after attaining the age of 60 years. All unorganized workers, in the age group of 18-40 years, whose monthly income is up to Rs. 15,000 and who are not members of Employees’ Provident Fund Organization or Employees’ State Insurance Corporation or National Pension System (Government contributed) and are also not income tax payers, are eligible to enroll under the Scheme. The subscriber is required to pay the prescribed monthly contribution amount and the Central Government provides the equal matching contribution. This Scheme is implemented through Life Insurance Corporation of India. Enrollment under the Scheme can be done through any of the Common Service Centres across the country.

Also check: Hike Pensioners pay who is at the age of 80 yrs and above of Maharashtra Pensioners from 1.1.2019

Further, vide notification No. G.S.R. 593 (E) dated 19.08.2014, a minimum pension of Rs. 1000 per month has been fixed with effect from 01.09.2014 for the pensioners under Employees’ Pension Scheme (EPS), 1995 framed under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952, applicable to establishments which belong to industries and classes of establishments listed in Schedule-I and where number of employees is 20 or more. No decision has been taken at present to further enhance the minimum pension under EPS, 1995.

Further, Atal Pension Yojana (APY) was launched in May, 2015, by the Government of India, and Indian Citizens between the age group of 18 to 40 years are eligible to join APY through their savings bank account or post office savings bank account. Depending upon the pension plan selected, each subscriber under APY shall receive a guaranteed minimum pension of Rs. 1000/- per month or Rs. 2000/- per month or Rs. 3000/- per month or Rs. 4000/- per month or Rs. 5000/- per month, after the age of 60 years until his/her death.

This information was given by Shri Santosh Kumar Gangwar Union Minister of State (I/C) for Labour and Employment in written reply to a question in Lok Sabha today.

PIB

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Central Board of Trustees (CBT) approved the proposal to recommend for amendment in Employees Pension Scheme (EPS) 1995

Ministry of Labour & Employment

CBT Approved Proposal to Recommend Amendment in EPS 1995
225th meeting of CBT held on 21st august, 2019 at Hyderabad

22 AUG 2019

In a major decision, the Central Board of Trustees (CBT) EPF in a meeting held at Hyderabad on 21 August 2019, approved the proposal to recommend for amendment in Employees’ Pension Scheme (EPS) 1995 for restoration of commuted value of pension to the Pensioners after 15 years of drawing commutation which will benefit approx. 6.3 lakhs pensioners. This was a long pending demand of the pensioners.

The Minister of State (I/C) for Labour and Employment Shri Santosh Kumar Gangwar whose also Chairman CBT, while addressing the CBT expressed satisfaction that Employees’ Provident Fund Organisation (EPFO) is settling more than 91 % claims of EPF members in online mode and lauded the efforts made to improve services for settlement of claims of family of deceased members and EPF call centre function 24 by 7.

He also appreciated the good governance strategy adopted by EPFO in saving of Rs.22 crores p.a. due to negotiating reduced OD charges increased FD interest and waiver of collection charges by SBI and further savings of Rs.50 lakhs p.a. due to reduction in collection charges by three banks and achievement of highest yield (8.55%) by Portfolio Managers since July 2015.

The Minister released the educative booklet on seasonal employees regarding special provision in EPS’1995 regarding eligibility of seasonal employees for pension. The contents of booklet brings out the Scheme provision that contributory service in any year, even if contributory period is less than a year is treated as full year of eligible service for seasonal employee and this will help dispel doubts in minds of members/employers.

The Chairman CBT also launched the revamped EPFIGMS 2.0 version which will benefit more than 5 crores subscribers and lakhs of employers by speedy and smooth resolution of grievances.

The Board approved the proposal for Selection and Performance Evaluation of next Custodian by the new Consultant which will be appointed on the basis of Report of Five Members’ Committee constituted by the CBT for the purpose.

In the matter of coupon default of IL&FS Ltd, the Board nominated three officers of Investment Division of EPFO to attend the Debenture – Holders’ Meeting that may be held in future and if need be, vote on behalf of the Central Board, EPF.

Selection of ETF Manufacturers: The Board approved the decision to choose the Exchange Traded Fund (ETF) manufacturers through public bidding by 30/10/2019, extension of the term of the present ETF manufacturers (SBI MF and UTI MF) till then and also to authorized the Finance Investment & Audit Committee (FIAC) to conduct the exercise of choosing ETF manufacturers.

Allocation of investment in Nifty 50 and Sensex: The Board approved the proposal that the fund allocation between Nifty 50 and Sensex ETFs be divided evenly, i.e. in the ratio of 50% to 50%.

Appointment of a Consultant in addition to M/s. CRISIL Ltd: The Board approved the nomination of members from employer’s and employee side in a Committee constituted to select and appoint a separate Agency/Consultant in addition to M/s. CRISIL limited, inter-alia to review the working of the Portfolio Managers (PMs), assist the investment Committee in redemption of ETFs, etc.

Appointment of Portfolio Managers for managing funds of Central Board, EPF: The Central Board approved Request for Proposal (RFP) document for appointment of Portfolio Managers and recommendation of the FIAC on appointment of Portfolio Managers.

Exercise of early redemption options available in DHFL Bonds: The Board approved for early redemption option in DHFL bonds recommended by FIAC.

Consent for Transfer of Non- Convertible Debentures (NCDs) of GSPC to GSIL: EPFO has total investment of Rs.2300 Cr in GSPC NCDs. The Board approved the transfer of NCDs of GSPC to GSIL, a wholly owned subsidiary of Govt. of Gujarat and a better rated company which had made an offer to take over debt of GSPC with budgetary support of Government of Gujarat

Legal Entity Identifier Code (LEI) for participation in non- derivative markets by EPFO: In Nov’18, the Reserve Bank Of India (RBI) issued advisory to all eligible market participants in the Financial Markets to obtain LEI Code. The Board approved the nomination of the EPFO Officers as the authorized Officials to obtain LEI Code.

Withholding Investments in bonds of private sector companies: The CBT approved the decision to withhold any further investment in Private Sector Companies Bonds and to compulsorily consider one of the two required ratings necessarily from CRISIL, CARE, ICRA & India Ratings for investments in PSU Bonds category.

The Board ratified the decision of put option in NCDs of Tamil Nadu Power Finance Corporation and also approved put option in bond issued Kerala Finance Corporation & Tamil Nadu Power Finance and Infrastructure Dev. Corp. Ltd.

Shri Raghunathan, Employees’ Representative on the Central Board, EPF appreciated the efforts of the Finance Investment & Audit Committee chaired by the Central Provident Fund Commissioner in finalizing the new Portfolio Managers for investing EPFO’s corpus through a very transparent procedure. He further informed the Board that while SBI’s Fund Management Arm has quoted 94% lesser than SBI PMS in the last mandate, UTI AMC has quoted 28% lesser. This would result in huge savings in portfolio management fees by EPFO.

PIB

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All-India EPS-95 Pensioners Sangharsh Samiti will take out a march from the Jantar Mantar to the Prime Minister’s Office (PMO) in Delhi on February 27 for the minimum monthly pension of Rs 7500 under the scheme.

EPS-95 pensioners from all over the country have been agitating on the issue of raising their pension since the last three years, but the Centre has done nothing except giving hollow assurances, a statement said Friday.

“As per a Supreme Court order, EPS pensioners should be given a higher pension. At present they are getting the pension in range of Rs 200 to Rs 2500 per month, which is meagre in view of rising inflation,” the Sangharsh Samiti’s Bhopal coordinator R A Dharkar stated.

He said the pension amount should be raised to minimum Rs 7500 per month apart from the DA (Dearness Allowance).

“A rally will be taken out on February 27 from Jantar Mantar to the office of the Prime Minister for our demands,” the release stated.

The Samiti also seeks better medical facilities to the EPS-95 pensioners and their spouses. It also wanted that those retired employees who are not part of the scheme be brought under its ambit.

Dharkar claimed the Central government had only given hollow assurances to pensioners.

EPS or Employee Pension Scheme, which was brought into force in the year of 1995, is a guaranteed pension plan supported by the government, wherein the stipulated amount will be remitted to the employee upon retirement, without any changes to the same.

PTI

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07 JAN 2019

Pradhan Mantri Rojgar Protsahan Yojana (PMRPY) was launched on 9th August, 2016 with the objective to incentivise employers for creation of employment. Under the scheme, Government of India is paying Employer’s full contribution i.e. 12% towards EPF and EPS both (as admissible from time to time) w.e.f. 01.04.2018 for a period of three years to the new employees and to the existing beneficiaries for their remaining period of three years through EPFO.  The terminal date for registration of beneficiary through establishment is 31st March, 2019.The scheme is targeted for employees earning upto Rs. 15,000 per month. This scheme has a dual benefit, where, on the one hand, the employer is incentivised for increasing the employment base of workers in the establishment, and on the other hand, these workers will have access to social security benefits of the organized sector. Number of Employees and Establishments benefitted as on 31.12.2018 is 98.38 lakh and 1.21 lakh respectively. State-wise employees, establishment benefited and amount of subsidy disbursed is at Annexure.

Annexure

Details from PMRPY Portal from inception till 31-Dec- 2018

This information was given by Shri Santosh Kumar Gangwar Union Minister of State (I/C) for Labour and Employment in written reply to a question in Lok Sabha today.

PIB

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