EPFO nod likely soon for minimum Rs 2,000 EPS pension

Provident Fund

EPFO nod likely soon for minimum Rs 2,000 EPS pension

The Employees’ Provident Fund Organisation (EPFO) is expected to soon give its go-ahead to the proposal of doubling monthly pension for EPS subscribers to Rs 2,000.
This would benefit at least 40 lakh subscribers and cost the Centre a minimum Rs 3,000 crore per annum.
The issue, though not listed on the agenda for the upcoming central board of trustees’ meeting of EPFO on June 26, is likely to be tabled after permission from the labour minister, who is the chairman of the board.
The Union Cabinet had in 2014 approved a minimum pension of Rs 1,000 a month for a year and later extended it till perpetuity in 2015. The differential cost of Rs 813 crore per annum to pay the minimum pension is borne by the Centre and going forward this could more than double if the pension amount is increased two-fold for all subscribers currently getting less than Rs 2,000 a month.
Another issue that can come up for consideration of the board includes giving EPFO subscribers the option to increase their investments in equity beyond 15%. This would, however, require the financeNSE -0.48 % ministry to notify the new investment pattern for EPFO.
Source: Economic Times

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