Lok Sabha Question No. 207 (UNSTARRED), answered on 2022-07-18
Subject: EPS-95 Scheme
Ministry: LABOUR AND EMPLOYMENT
Asked by: Rajmohan Unnithan

- (a):

## GOVERNMENT OF INDIA LOK SABHA

## MINISTRY OF LABOUR AND EMPLOYMENT

## UNSTARRED QUESTION NO. 207 TO BE ANSWERED ON 18.07.2022

## EPS-95 SCHEME

## 207. SHRI RAJMOHAN UNNITHAN:

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

- (a)whether it is a fact that 30 lakhs of eligible pensioners have not yet received the minimum pension of Rs.1,000 even since introduction of the term PF Pension;
- (b)whether the Government has taken steps to review and revise the EPS-95 scheme every ten years and if so, the details thereof and if not, the reasons therefor;
- (c)whether the Supreme Court has constituted a three-member bench to inquire into the non-payment of pensions to the retiring workers and if so, the details thereof; and
- (d)whether the Government is working on a comprehensive revision of the PF pension and if so, the details of the plan to implement the same in near future?

## ANSWER

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

- No, Sir.
- (b): The Employees' Pension Scheme (EPS), 1995 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, 1995 came into force on 19.11.1995.  Review  and  revision  of  schemes  is  an  ongoing  process. The provisions of the EPS, 1995 have been 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, 1995 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.
- (c): 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.
- (d): The Code on Social Security, 2020 (36 of 2020), was notified on 29.09.2020, which subsumes 9 Central labour 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 yet to come into force.

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