EPFO New Pension Scheme: If you are a member of Employees’ Provident Fund Organization (EPFO). Then this news is for you. Because the central government is discussing about the implementation of the new pension scheme.
New Delhi: EPFO New Update: If you are a member of Employees’ Provident Fund Organization (EPFO). Then this news is for you. According to reports, the retirement fund body EPFO is contemplating to bring a new pension scheme for organized sector employees, who are getting a basic salary of more than Rs 15,000 per month and their employees pension. Not being covered under Scheme 1995 (EPS-95). At present, those employees of the organized sector whose basic salary (Basic Pay and Dearness Allowance) is up to Rs 15,000 are compulsorily covered under EPS-95.
CBT meeting will be held next month
According to the news of PTI, an EPFO source said that “There has been a demand for more pension on higher contribution among the members of EPFO. Thus a new pension product or scheme is being actively considered for those whose monthly basic salary is more than Rs 15,000. According to sources, the proposal on this new pension may come in the meeting of the Central Board of Trustees (CBT), the apex decision-making body of the EPFP, in Guwahati on March 11 and 12. During the meeting, a sub-committee on pension related issues constituted by the CBT in November, 2021 will also submit its report.
Now get less pension
It has been told in the report that there are EPFO subscribers who are getting monthly basic salary of more than Rs 15,000, but they are able to contribute under EPS-95 at a lower rate of 8.33 percent. In this way they get less pension. The EPFO had amended the scheme in 2014 to limit the monthly pensionable basic pay to Rs 15,000. The limit of Rs 15,000 is applicable only at the time of joining the service. It was revised upwards from Rs 6,500 with effect from 1st September 2014 due to wage revision and price hike in the organized sector.
Interest rate may also increase
In the meeting to be held next month, the decision related to the interest rate for the financial year 2021-22 will also be taken. Union Labor Minister Bhupendra Yadav had given information about the meeting. He had told that a proposal to fix interest rates for 2021-22 is listed in this meeting. Yadav heads the CBT. Earlier in March 2021, the CBT had fixed an interest rate of 8.5 percent on EPF deposits for the financial year 2020-21.
