EPS 95 Pensioners % age to Total Members - Analysis of Pensioners to Total Members Data compiled from various Annual Reports

Pensioners % age to Total Members - Analysis of Pensioners to Total Members (Data compiled from various Annual Reports)

The relevant pages relating to the variations noticed in the Membership data in the EPFO’s Annual Reports for the years 1996-97, 2000-01 & 2003-04 may be seen by pressing the link: https://bit.ly/38cvu30

Difference in Membership data in Annual Reports (Relevant pages of AR_1996-97_2000-01_2003-04,
See Link: https://bit.ly/38cvu30)

• Number of Pensioners as per the Annual Report for the year 1996-97 is 1,20,477 (this figure has been considered in this analysis) whereas in the Annual Report for the year 2003-04, the figure pertaining to the year 1996-97 has been shown by EPFO as 2,90,329.
• Number of Pensioners as per the Annual Report for the year 2000-01 is 9,37,126 (this figure has been considered in this analysis) whereas in the Annual Report for the year 2003-04, the figure pertaining to the year 2000-01 has been shown by EPFO as 4,37,126. This variation seems to be due to typing error but which figure is correct, could not be ascertained. On analysing the Graph, we observe that the % is increasing continuously upto 2008-09 and thereafter it is decreasing
  every year.
  

What could be the possible reason for decrease in Pensioners %:

1. Initially, EPFO had advertised in all the National Dailies by releasing full page ads clarifying that the Pension in EPS’95 is better than the Government of India Pension, where the pension is calculated @50% of last salary drawn whereas in EPS’95, the pension amount can be upto 60%. But after the decision of Supreme Court upholding this Scheme by its judgement dt 11-11-2003; EPFO imposed an illegal cut-off date (01-12-2004) for the submission of options which resulted into unpopularity of this Scheme encouraging the employees to withdraw their deposited amount instead of going for pension.

2. The Scheme became unattractive/non-beneficial after EPFO discontinued the facility of Commutation of Pension and Return of Capital w.e.f. 26-09-2008.

3. Employees faith on EPS-95 is reducing as EPFO started taking back the benefits on account of Deficit in Actuarial Reports.

4. If the EPS’95 Scheme is beneficial, the employees would have opted for Pension for their Social Security but the factual trend shows reverse of it.

5. Members are increasing, so the contribution too WHEREAS Pensioners are decreasing, so the Liability on EPFO is reducing every year.

6. Hence, there is decreasing trend in Liability whereas EPFO is falsely projecting increase in Liability at all platforms. 

Credit: Neeraj Bhargava in consultation with Mr. Parveen Kohl