EPF Pension The Modi government at the centre is preparing for a major change 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 given to PF holders till now to a respectable level. Discussions are also being held on giving the option of increasing the contribution to the EPS fund to the employees.
In order to strengthen social security, proposals are being seriously considered to make the pension of the Employees’ Provident Fund Organisation (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/her life partner after their death.
Option to increase contribution also discussed
The labour ministry considers this proposal to be very important in terms of encouraging EPF members to join the pension scheme. The ministry is considering rationalising the low pension even after a long service period, which also includes a proposal to increase the minimum pension amount of the current Rs 1,000. To strengthen the social security structure under EPF, the Ministry of Labor is seriously deliberating on giving the members the option of increasing their contribution to the 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 expressed. During the discussions held at the top level, it was clearly stated that a large number of EPF members have a dilemma that their money deposited in the pension fund will not be returned 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 the 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 deposit amount of the pension fund will be given to their nominated-dependent children. Talk of reviewing the minimum amount
The ministry believes that after this major change in the structure 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 the one hand people have started getting higher pension under EPF, while on the other hand many people are getting less pension even after years of service. In such a situation, it is necessary to make long service period a factor, so that this pension can be rationalized.
At present, only thousand rupees pension is available
The minimum pension under EPF is only one thousand rupees per month and while reviewing it under the reforms, brainstorming is going on on the possibilities of significant increase. 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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