EPFO has more than sixty million subscribers. (document)
New Delhi:
The government said today it was reviewing a Supreme Court judgment that upheld the Employees’ Pensions (Amendment) Scheme 2014 and gave employees the option to increase their pension coverage with their employer after four months.
“Yes, sir. The direction of the Supreme Court in the judgment is under review,” Rameswar Teli, Minister of State for Labor and Employment, said in a written reply to Rajya Sabha.
Rameswar Teli was answering a question on whether the government is aware of the Supreme Court’s November 4 ruling on the EPF pension scheme and when it will be implemented and directed EPFO (Employees Provident Fund Organization) to take action to provide higher pensions.
In a separate written reply, Rameswar Teli said the court decision has legal, financial, actuarial and logistical implications.
The plan provides eligible employees with a four-month extension to opt for an increased pension.
The Supreme Court order stipulated that as of September 1, 2014, employees of existing EPS-95 members can contribute up to 8.33% of their actual wages and 8.33% of accrued wages capped at Rs 15,000 per month for pension gold.
It also removed the 2014 amendment requirement that employers contribute 1.16 percent of wages above Rs 15,000 per month.
This will help subscribers to contribute higher to the program and receive higher benefits accordingly.
The pension fund agency has more than 6 million subscribers. Substantial contributory members of pension schemes will benefit from opting for salary contributions above the threshold of Rs 15,000 per month.
The minister also said that the corpus of EPFO is Rs 1,864,136 crore. This amount includes Rs 1,137,096.72 crore in Employees Provident Fund Scheme, 1952; Rs 6,892,107.2 crore in Employees Pension Scheme, 1995 and Rs 37,828.56 crore in Employees Deposit Linked Insurance Scheme, 1976 as at 31 March 2022.
(Aside from the title, this story is unedited by NDTV staff and published via a syndicated feed.)
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