EPS Pension: In today’s world of rising prices, especially for essentials like milk and vegetables, countless elderly individuals are struggling to get by on a mere Rs 1,000 monthly pension. For years, those receiving the EPS-95 pension have been waiting for the government to take action and raise their minimum pension. So, why is the government still holding back after all this time?
What’s really going on?
This topic recently sparked a debate in the Lok Sabha. The pressing question was: why is there such a holdup in raising the minimum pension under the EPS? Why is the process of fixing pensions moving at a snail’s pace despite directives from the Supreme Court? The Ministry of Labor and Employment responded, referencing outdated information. The government pointed out that the minimum pension was set at Rs 1,000 back in 2014. Even then, they provided budgetary support to ensure that no elderly person received less than this amount. Ironically, inflation has surged dramatically since 2014, yet the pension has not budged. The core issue is that this pension isn’t tied to the dearness allowance or the cost of living index, leading to a steady erosion of the elderly’s purchasing power.
What does the committee report say?
The government’s primary reason for the lack of pension increases is the “actuarial deficit,” meaning a lack of funds. The ministry explained that the Employees’ Pension Scheme (EPS) is a “pooled fund.” The calculations are simple: the employer contributes 8.33% of the employee’s salary, and the government contributes 1.16%.
According to the government, data as of March 31, 2019, shows a significant financial deficit in the fund. Consequently, a significant increase in pension amounts or the provision of dearness allowance (DA) appears unfeasible at this time. Furthermore, when a high-level committee examined the feasibility of linking pensions to dearness allowance (DA), it also rejected the proposal. The report clearly stated that the current fund situation is not conducive to providing pensioners with the benefit of dearness allowance (DA). This technical snag is the reason why the demand for Rs 7,500 remains pending.
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Sweta Mitra
Working in the media for last 7 years. The journey started in the year 2018. For the past few years, my working experience has been in Bengali media. Currently working at Timesbull.com. Here I write like Business, National, and Utility News. My favorite hobbies are listening to music, traveling, food,...
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