EPS 95 Pension Hike 7500 Latest Loksabha Update: Whether the Government has taken or proposes to increase basic pension and to provide dearness allowance and free health care facilities to the EPS pensioners of 1995

GOVERNMENT OF INDIA

MINISTRY OF LABOUR AND EMPLOYMENT 

LOK SABHA

UNSTARRED QUESTION NO. 949

TO BE ANSWERED ON 26.07.2021

COLLECTIVE DEMANDS OF EPS PENSIONERS

949. SHRIMATI SARMISTHA SETHI: 

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

(a) whether the Government has taken or proposes to increase basic pension and to provide dearness allowance and free health care facilities to the EPS pensioners of 1995 and their families;

(b)if so, the details thereof; 

(c)the steps taken or proposed to be taken by the Government in this regard;

(d)whether the Government has received any representation with regard to collective demands of EPS pensioners of 1995; and

(e)if so, the details thereof and the action taken/ proposed to be taken by the Government thereon?

ANSWER

MINISTER OF STATE FOR LABOUR AND EMPLOYMENT

(SHRI RAMESWAR TELI)

(a) to (e): Representations have been received from individual as well as pensioners associations raising various demands including some of the major demands:- 

(i) To increase the minimum monthly pension;

(ii) To link the monthly pension with cost of living index;

(iii) To provide free medical facilities or coverage under Ayushman Bharat Scheme of the pensioners and their spouse;

(iv) Payment of pension on Higher Wages to employees of exempted establishments;

(v) restoration of the commuted value of pension.

The Government had, for the first time, provided a minimum pension of Rs. 1000/- per month to the pensioners under EPS, 1995 from 01.09.2014 by providing additional budgetary support. In addition Government provides budgetary support of 1.16% of wages of the member to Employees’ Provident Fund Organisation (EPFO).

The details of funds released to the EPFO during the last three years towards Government of India’s statutory contribution of 1.16 per cent and minimum pension of Rs.1000/- per month under the Employees’ Pension Scheme, 1995 are as follows:

(Rupees in Crore)

Year           1.16% Contribution               Grants-in-aid towards minimum pension            Total

2018-19      3900.00                                 1000.00                                                            4900.00

2019-20      3696.67                                 1400.00                                                            5096.97 

2020-21      6027.61                                 1491.40                                                            7519.01

To consider the demands of Employees’ Pension Scheme (EPS), 1995 pensioners, the Government had constituted a High Empowered Monitoring Committee (HEMC) for complete evaluation and review of EPS 1995. The Committee did not recommend linking the monthly pension under EPS, 1995 with cost of living index as according to actuarial evaluation linking EPS, 1995 with price index, i.e. D.A. relief will severely affect the financial health of the Pension Fund.

The Government proposes to extend medical benefits to EPS, 1995 pensioners drawing minimum pension upto Rs.1000/- per month under EPS, 1995 and residing in Delhi through a pilot scheme.

The issue of higher pension on actual salary is currently sub-judice before the Hon’ble Supreme Court.

The recommendation of the HEMC to restore commuted value of pension after expiry of 15 years for EPS pensioners who had opted for commutation has been notified w.e.f. 20.02.2020.