Crores of pensioners, who have been demanding EPS-95 pension increase for many years, are sitting in the hope that the government will directly increase the minimum pension from Rs 1000 to Rs 7500. But is this hope still alive? It has become clear from the recent answers given in the Lok Sabha that it is not easy to take any major decision in this direction soon. For the first time, the Central Government has clearly stated what the current condition of the EPS fund says and this is the reason why the demand for increasing the pension does not seem to be being met yet.
In response to a question asked in the Lok Sabha, Minister of State for Labor and Employment Shobha Karandlaje said that the government is currently not considering increasing the minimum EPS pension. He clarified that there is an actuarial deficit in EPS-95 as per the fund valuation of the year 2019. That is, the fund is not able to give enough returns to fully fulfill the pension obligations already being paid.
Why is EPS fund not able to cope with increasing demand?
EPS-95 is a defined contribution-defined benefit scheme. In this, the total share of pension fund comes from two sources. First, 8.33% contribution by the employer and second, 1.16% contribution by the Central Government (salary limit up to Rs 15,000). Karandlaje said that the amount received from the fund is the basic basis for payment of pension. But it is not possible to scale up immediately given current funding and future liabilities.
Big demands of EPS pensioners
MP Ballya Mama Suresh Gopinath Mathre asked questions on many serious problems related to EPS pensioners-
- Why is DA not given on pension?
- How will one survive in rising inflation with a minimum pension of Rs 1000?
- Will the government take action on the demands of EPS-95 pensioners?
The government clearly said in its reply that at present it is giving a minimum pension of Rs 1000 to EPS-95 pensioners by providing extra budgetary support. But since the condition of the EPS fund is not good, it is difficult to take a decision on increasing the pension or making major changes in the scheme soon.
Will pension increase?
The government said that it is committed to providing maximum benefits to the workers under EPS-95, but any decision will be taken only after keeping in mind the condition of the fund and future liabilities. That is, at present the hope of growth is bleak, but in future, some good steps may be possible with reforms in the fund or new financial provisions.
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