EPS-95 Raised In Lok Sabha, Kerala MP Seeks Immediate Implementation Of Enhanced Pension Scheme

The Employees' Pension Scheme 1995, or EPS-95, was raised in the Lok Sabha, with a Member of Parliament demanding the government to immediately implement the enhanced pension scheme for the employees.

The demand was raised by NK Premachandran of the Revolutionary Socialist Party, who represents Kerala's Kollam constituency in the Lok Sabha.

During the Zero Hour of the Parliament's Lower House on Monday, Premachandran said employees should be allowed to opt for higher pension under EPS-95, as approved by the Supreme Court two years ago, at the earliest.

In November 2022, the apex court had ruled in favour of existing employees being able to opt for a higher pension under EPS-95. The bench paved the way for enhancement of the wage ceiling to Rs 15,000 per month for the calculation of contribution towards the pension.

Premachandran said employees are entitled to a higher pension, and they can opt for enhanced pension under EPS-95 as allowed by the Supreme Court.

Notably, the EPS-95, which the Employees' Provident Fund Organisation introduced on November 19, 1995, is a social security initiative intended to cater to the retirement needs of employees in the organised sector.

Administered by the EPFO, this scheme guarantees pension benefits to eligible employees who reach the age of 58.

Responding to another query in the Lok Sabha, the Union Minister state of Labour & Employment Shobha Karandlaje said around 17.49 lakh EPS members have applied for higher pensions.

"In implementation of the judgement on Nov. 4, 2022 passed by Supreme Court, an online facility was provided by EPFO, wherein total 17.49 lakh applications for Validation of Option/Joint Options were successfully submitted by the applicants," Karandlaje stated.

However, the EPFO has given higher pensions to only 8,401 subscribers, news agency PTI reported.

Meanwhile, while responding to another query raised in the Lok Sabha, Karandlaje noted that the corpus of the Employees' Pension Fund is made up of contribution by the employer at the rate of 8.33% of wages; and contribution from central government through budgetary support at the rate of 1.16% of wages, up to Rs 15,000 per month.

The government had, for the first time, in 2014, provided a minimum pension of Rs 1,000 per month to the pensioners under the EPS, 1995 by providing budgetary support, which was in addition to the budgetary support of 1.16% of wages provided annually towards EPS to EPFO.

With PTI inputs