For implementing the SC decision, Govt directed EPFO to give more pension

New Delhi: The government on Thursday said it is examining the Supreme Court’s judgment that upheld the Employees’ Pension (Amendment) Scheme, 2014 and asked employees to share the enhanced pension with their employers in four months’ time. Was allowed to opt for coverage.

In a written reply to the Rajya Sabha, Minister of State for Labor and Employment Rameshwar Teli said the Supreme Court directions are being examined in the judgement.

Teli was replying to a question whether the government was aware of the November 4 Supreme Court judgment on the EPF pension scheme and by when it would implement the judgment and asked the EPFO (Employees’ Provident Fund Organisation) to pay higher pension. Will give instructions to take action.

In another written reply, Teli said the court’s decision has legal, financial, actuarial and logistical implications.

The apex court order provides that employees who were existing EPS-95 members as on September 1, 2014, can contribute up to 8.33 per cent of their actual salary, subject to a limit of Rs 15,000 per month at 8.33 per cent of the pensionable salary. ,

It also did away with the requirement of the 2014 amendments mandating employer contribution of 1.16 per cent of salary above Rs 15,000 per month.

This would facilitate the subscribers to contribute more to the scheme and accordingly avail more benefits.

The retirement fund body has over six crore subscribers. Large number of members contributing to the pension scheme will be benefitted by opting for contribution on salary exceeding the limit of Rs 15,000 per month.

The minister also said that EPFO has a corpus of Rs 18,64,136 crore. Of this amount, Rs 11,37,096.72 crore in the Employees’ Provident Fund Scheme, 1952; Employees’ Pension Scheme, Rs 6,89,210.72 crore in 1995 and Employees’ Deposit-Linked Insurance Scheme, Rs 37,828.56 crore in 1976, by March 31, 2022.