Demand for Enhanced Pension Under EPS-95 Grows
The demand for the immediate implementation of the enhanced pension under the Employees’ Pension Scheme (EPS-95) is escalating, sparked by recent discussions in the Lok Sabha. N K Premachandran, a member of Parliament from the Revolutionary Socialist Party, highlighted the urgency of the situation on Monday, calling for the government to promptly implement the enhanced pension scheme as endorsed by the Supreme Court.
On November 4, 2022, the Supreme Court ruled in favor of allowing existing employees the option to choose a higher pension under the EPS, 1995. This significant ruling has prompted a surge of interest among employees seeking to maximize their retirement benefits.
Current Status of Applications
As of August 7, 2024, the Employees’ Provident Fund Organization (EPFO) has received a staggering 1,748,775 applications for higher pensions. However, it has only been able to approve an alarming 8,401 of these requests. During the Zero Hour in Parliament, Premachandran emphasized that eligible employees are entitled to these higher pensions under EPS 1995.
Additionally, out of over 1.7 million EPFO members, many have applied for the option to contribute based on their actual higher basic pay. Currently, these applicants are or were contributing based on a fixed threshold of Rs 15,000 per month, regardless of their actual higher salaries.
Government’s Response
Minister of State for Labour & Employment, Shobha Karandlaje, confirmed the implementation of the Supreme Court’s judgment in November 2022, stating that an online facility was provided by the EPFO. As a result, a total of 1.749 million applications for the validation of options were successfully submitted by the applicants.
The EPS-95, introduced by the EPFO on November 19, 1995, is a vital social security initiative designed to meet the retirement needs of employees in the organized sector. Administered by the EPFO, the scheme guarantees pension benefits to eligible employees upon reaching the age of 58.
As discussions continue in Parliament and among the public, the pressure mounts for a timely resolution to ensure that all eligible employees can benefit from the enhanced pension scheme in accordance with the Supreme Court ruling.
