EPFO may double minimum monthly pension to Rs 2,000 to benefit 40 lakh pensioners

In a significant move to support the pensioners, retirement fund body Employees’ Provident Fund Organisation (EPFO) is considering doubling the minimum monthly pension for Employees’ Pension Scheme (EPS) subscribers to Rs 2,000. This would benefit at least 40 lakh subscribers and cost the government a minimum Rs 3,000 crore annually if implemented.
The matter, is not on the agenda for the upcoming Central Board of Trustees’ (CBT) meeting of EPFO on June 26, may be tabled after permission from the labour minister, who is the chairman of the board, says an Economic Times report.
In 2014, the government had approved a minimum monthly pension of Rs 1,000 for a year under the EPS, following which it extended the amount in perpetuity the following year. At present, the Centre bears the differential cost of Rs 813 crore per year to pay the minimum pension and would have to pay more than double if the amount is hiked twofold for all subscribers who are currently getting less than Rs 2,000 a month.
The meeting is also expected to consider a proposal to allow over five crore subscribers of EPFO to invest more of their retirement contribution in stocks to possibly earn higher returns. The labour ministry expected to present a proposal to increase the stipulated equity investment limit of 15 per cent at the CBT meeting on Tuesday.
Source: Times Now News