Lok Sabha Question No. 949 (UNSTARRED), answered on 2021-07-26
Subject: Collective Demands of EPS Pensioners
Ministry: LABOUR AND EMPLOYMENT
Asked by: Sarmistha Sethi

## GOVERNMENT OF INDIA

## MINISTRY OF LABOUR AND EMPLOYMENT

## LOK SABHA

## UNSTARRED QUESTION NO. 949 TO BE ANSWERED ON 26.07.2021

## COLLECTIVE DEMANDS OF EPS PENSIONERS

## 949.  SHRIMATI SARMISTHA SETHI:

Will  the  Minister  of  LABOUR  AND  EMPLOYMENT  be  pleased  to state:

- (a)whether the Government has taken or proposes to increase basic pension  and  to  provide  dearness  allowance  and  free  health  care facilities to the EPS pensioners of 1995 and their families;
- (b)if so, the details thereof;
- (c)the steps taken or proposed to be taken by the Government in this regard;
- (d)whether  the  Government  has  received  any  representation  with regard to collective demands of EPS pensioners of 1995; and
- (e)if so, the details thereof and the action taken/ proposed to be taken
- by the Government thereon?

## ANSWER

## MINISTER OF STATE FOR LABOUR AND EMPLOYMENT (SHRI RAMESWAR TELI)

- (a) to (e): Representations have been received from individual as well as pensioners associations raising various demands including some of the major demands:-
- (i) To increase the minimum monthly pension;
- (ii) To link the monthly pension with cost of living index;
- (iii)  To  provide  free  medical  facilities  or  coverage  under  Ayushman
- Bharat Scheme of the pensioners and their spouse;
- (iv)  Payment  of  pension  on  Higher  Wages  to  employees  of  exempted
- establishments;
- (v) restoration of the commuted value of pension.

The Government had, for the first time, provided a minimum pension  of  Rs.  1000/-  per  month  to  the  pensioners  under  EPS,  1995 from 01.09.2014 by providing additional budgetary support. In addition Government  provides  budgetary  support  of  1.16%  of  wages  of  the member to Employees' Provident Fund Organisation (EPFO).

The details  of  funds  released to  the  EPFO  during  the  last three  years  towards  Government  of  India's  statutory  contribution of 1.16 per cent and minimum pension of Rs.1000/- per month under the Employees' Pension Scheme, 1995 are as follows:

(Rupees in Crore)

| Year    |   1.16% Contribution |   Grants-in-aid towards minimum pension |   Total |
|---------|----------------------|-----------------------------------------|---------|
| 2018-19 |              3900    |                                  1000   | 4900    |
| 2019-20 |              3696.67 |                                  1400   | 5096.97 |
| 2020-21 |              6027.61 |                                  1491.4 | 7519.01 |

To  consider  the  demands  of  Employees'  Pension  Scheme (EPS),  1995  pensioners,  the  Government  had  constituted  a  High Empowered  Monitoring  Committee  (HEMC)  for  complete  evaluation and review of EPS 1995. The Committee did not recommend linking the monthly  pension  under  EPS,  1995  with  cost  of living index as according to actuarial evaluation linking EPS, 1995 with price index, i.e.  D.A.  relief  will  severely  affect  the  financial  health  of  the  Pension Fund.

The  Government  proposes  to  extend  medical  benefits  to EPS,  1995  pensioners  drawing  minimum  pension  upto  Rs.1000/-  per month under EPS, 1995 and residing in Delhi through a pilot scheme.

The  issue  of  higher  pension  on  actual  salary  is  currently sub-judice before the Hon'ble Supreme Court.

The  recommendation  of  the  HEMC  to  restore commuted value of pension after expiry of 15 years for EPS pensioners who had opted for commutation has been notified w.e.f. 20.02.2020.

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