EPFO considering pension for retired clients
BY PTI21 Aug 2012 10:09 AM GMT
PTI21 Aug 2012 10:09 AM GMT
Subscribers of the retirement fund body Employees Provident Fund Organisation (EPFO) may soon get a minimum monthly pension of Rs 1,000 after superannuation, if a proposal in this regard is cleared by the finance ministry.
‘Labour Ministry has recently sent a proposal to the Finance Ministry to fix minimum pension to the EPFO subscribers at Rs 1000, no matter what their contribution is towards the scheme,’ a source privy to the development said.
On the recommendations of the EPFO, the labour ministry has proposed to the finance ministry to either withdraw the two year bonus given to subscribers on completion of 20 years of service or bear additional burden of Rs 539 crore every year for fixing minimum pension of Rs 1,000. At present every subscribers who completes 20 years of service is given benefit of additional two year bonus while tabulating his or her pension.
According the the EPFO, if this two year bonus is withdrawn, the exercise of fixing minimum pension at Rs 1,000 would be a revenue neutral exercise besides pensioners getting about 5 per cent relief. However, if the finance ministry does not go for this alternative, the government would have to shell out Rs 539 crore every year in addition to its existing payout of Rs 994 crore annually for contributing 1.16 per cent of basic pay and DA to the pension fund.
‘Labour Ministry has recently sent a proposal to the Finance Ministry to fix minimum pension to the EPFO subscribers at Rs 1000, no matter what their contribution is towards the scheme,’ a source privy to the development said.
On the recommendations of the EPFO, the labour ministry has proposed to the finance ministry to either withdraw the two year bonus given to subscribers on completion of 20 years of service or bear additional burden of Rs 539 crore every year for fixing minimum pension of Rs 1,000. At present every subscribers who completes 20 years of service is given benefit of additional two year bonus while tabulating his or her pension.
According the the EPFO, if this two year bonus is withdrawn, the exercise of fixing minimum pension at Rs 1,000 would be a revenue neutral exercise besides pensioners getting about 5 per cent relief. However, if the finance ministry does not go for this alternative, the government would have to shell out Rs 539 crore every year in addition to its existing payout of Rs 994 crore annually for contributing 1.16 per cent of basic pay and DA to the pension fund.
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