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Employees Pension Scheme Introduced

Employees Pension Scheme Introduced
Employees Pension Scheme Introduced
 Government had constituted an Expert Committee to review Employees’ Pension Scheme (EPS), 1995 which inter alia recommended providing minimum pension of Rs. 1000/- per month to the pensioners under EPS, 1995 and enhancing wage ceiling for coverage under the Employees’ Provident Funds & Miscellaneous Provisions (EPF & MP), Act, 1952 from  Rs. 6,500/-  per month to  Rs. 10,000/- per month. The Government has since implemented minimum pension of Rs. 1000/- per month to the member/disabled/widow/widower/ parent/nominee pensioners and Rs. 250/- per month for children pensioners and Rs. 750/- per month to orphan pensioners and increased wage ceiling for coverage under EPF&MP Act, 1952 from Rs.6,500 to Rs.15,000/.

The Employees’ Pension Scheme (EPS), 1995 has been calibrated time to time to make it robust.  Moreover, Government has recently made the following amendments to the EPS, 1995:

 

•         Wage ceiling for contributions to EPS, 1995 has been enhanced from Rs.6,500 to 15,000/- per month.

•         Determination of pension based on average of 60 months’ salary prior to exit instead of 12 months’ salary earlier.

•         Option for contributing on salary exceeding the wage ceiling has been deleted.

•         Those members who were contributing on salary exceeding the wage ceiling are required to prefer fresh option and contribute 1.16 per cent of wages exceeding wage ceiling in lieu of the Government’s contribution.

•         Pension and withdrawal benefits under EPS, 1995 to be determined on pro-rata basis for service at wage ceiling of Rs. 6,500/-  per month upto 31.08.2014 and Rs. 15,000/- per month thereafter.

•         Eligibility under EPS, 1995 is determined on the basis of contributory service instead of overall period of service.

•         Widow Pension Table (Table C) under EPS, 1995 has been extended upto revised wage ceiling of Rs. 15,000/- per month. 

 

The total number of pensioners under EPS, 1995 are 51,04,397 (Provisional) as on 31.3.2015.

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