EPS 95-Pension on actual salary.
1) Pension on actual salary as provided in section 11 (3) under the present pension formula will be immensely and disproportionately beneficial to those,who get lot of career progression (by promotion or by new appointment) and high salary in their EPS membership period.
2) Employees, who stagnate or get fewer promotions and pay rise in their EPS membership period will be disproportionately less benefited with a huge difference,such as mazdoors, peons,security guards, drivers, articians, factory workers etc.etc.,who constitute majority of EPS members.
3) Old pensioners and present employees who may retire near future and who are getting minimum pension/ likely to get pension on actual salary will not be benefited by such a decision.
4) Who bears the additional burden to pay higher pension to category one and two above.?
Since the respective employers and government will not be bearing additional outflow,the contribution of other members or existing members has to be diverted to pay the higher pension.Eventhough, EPS is a pooled account, EPFO and government apprehend that at some point of time , outflow from the corpus will be more than inflow, which will lead to collapse of the scheme itself.( Input from their affidavit). They also highlighted the discriminatory treatment to low paid workers.
For information of EPS members and brainstorming.
Without any malice to anyone.
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