Lok Sabha Question No. 5286 (UNSTARRED), answered on 2022-04-04
Subject: EPS-95 Pension Scheme
Ministry: LABOUR AND EMPLOYMENT
Asked by: Rajmohan Unnithan

## GOVERNMENT OF INDIA

## MINISTRY OF LABOUR AND EMPLOYMENT

## LOK SABHA

UNSTARRED QUESTION NO. 5286 TO BE ANSWERED ON 04.04.2022

## EPS-95 PENSION SCHEME

5286. SHRI RAJMOHAN UNNITHAN:

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

- (a)whether the Government has taken steps to review and revise the EPS-95 scheme every ten years; if so, the details thereof; if not, the reasons therefor;
- (b)whether the Supreme Court has constituted a three-member bench to inquire into the non-payment of pension to the retiring workers, if so, the details thereof; and
- (c)whether the Government is working for a comprehensive revision of the PF Pension, if so, the elaborate plan intended to implement the same shortly or in near future?

## ANSWER

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

- (a): The  Employees'  Pension  Scheme,  1995  (EPS-95)  has  been framed  by  the  Central  Government  in  accordance  with  the  powers conferred  by  section  6A  of  the  Employees'  Provident  Funds  and Miscellaneous Provisions (EPF and MP) Act, 1952. The EPS-95 came into  force  on  19.11.1995.  Review  and  revision  of  schemes  is  an ongoing process. The provisions of the EPS-95 are reviewed from time to time based on the recommendations of the Expert Committee and the  High  Empowered  Monitoring  Committee  as  well  as  taking  into account  the  actuarial  evaluation  of  the  Employees'  Pension  Fund. Some of the important amendments  made in EPS-95 are  as under:

- (i) Increase in wage ceiling from Rs. 6500/- to Rs.15000 per month from 01.09.2014.
- (ii) Provision  of  a  minimum  pension  of  Rs.  1000  per  month  to  the pensioners  under  EPS,  1995  from  01.09.2014  by  providing additional budgetary support wherever the pension was falling short  of  Rs.1000  as  per  pre-defined  formula  for  calculation  of pension.
- (iii) Restoration of normal pension after completion of fifteen years from the date of such  commutation,  in  respect of those members  who  availed  the  benefit  of  commutation  of  pension under  the  erstwhile  paragraph  12A  of  the  EPS,  1995,  on  or before 25.09.2008 vide notification G.S.R.132(E) dated 20.02.2020.
- (b): The Union of India and the Employees' Provident Fund Organisation (EPFO) have challenged the judgement dated 12.10.2018 of Hon'ble Kerala High Court, which set aside the 2014 amendments to the EPS-95, in the Hon'ble Supreme Court. The Hon'ble Supreme Court vide its order dated 24.08.2021 in Special Leave Petition (C) Nos.86588659 of 2019 and other connected cases directed to refer the matters to a Bench of at least three Judges. The matter is now sub-judice.
- (c): The Code on Social Security, 2020 (36 of 2020), was notified on 29.09.2020, which subsumes 9 Central labours laws including the EPF and  MP  Act,  1952.    Section  15  of  the  new  Code  envisages  to  frame various schemes including pension for the employees and their family members. However, the said Code has not yet come into force.

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