EPS-95 Pension: The long-standing request from EPS-95 pensioners to raise the minimum pension from Rs 1,000 to Rs 7,500 currently appears unfulfilled. This was highlighted when Minister of State for Labour and Employment, Shobha Karandlaje, responded to a question in the Lok Sabha, indicating that according to the 2019 valuation of the EPS Fund, there exists an actuarial deficit. This indicates that the fund’s financial status is insufficient to support a pension increase at this time. Consequently, this has heightened the frustration among pensioners who are seeking a rise in their pension amidst ongoing inflation and increasing costs.
The inquiry was made by Shiv Sena (UBT) MP Balya Mama Suresh Gopinath Mhatre, who asked if the government was contemplating raising the minimum pension under EPS-95 from Rs 1,000 to Rs 7,500. In her reply, Shobha Karandlaje clarified that the EPS-95 scheme functions on a “defined contribution – defined benefit” basis.
Employers contribute 8.33% to the fund, while the central government adds 1.16% as support, capped at a salary of Rs 15,000. The minister emphasized that all pensions and benefits are disbursed from this pooled fund, and based on the valuation as of March 31, 2019, the fund is currently in deficit, making an immediate increase unfeasible.
The MP also posed several other significant questions regarding EPS—such as why pensioners do not receive the dearness allowance (DA), whether the government plans to take any definitive actions to raise the pension amount, and if the requests from EPS-95 pensioners’ organizations have been addressed. In response to these inquiries, the minister affirmed that the government continues to guarantee a minimum pension of Rs 1,000 through budgetary support, alongside the 1.16% annual contribution. She also mentioned that the government is dedicated to maximizing benefits for employees, considering the health of the EPS fund and future obligations.
Social Security Scheme
EPS-95 is a vital social security scheme designed to protect employees and their families in situations such as old age, disability, and death. It includes superannuation pension at 58, early pension at 50, disability pension in case of permanent disability, widow/widower pension, special pension for children and orphans, nominee pension, and parental support. EPS members can also avail withdrawal benefits in case of short service. However, pensioners say that the minimum pension of Rs 1,000 is insufficient in the face of rising inflation, leading to repeated demands from the central government to increase the amount. However, the government’s latest response makes it clear that the hope of increasing the minimum pension may be postponed for some time.
