EPS-95 Pension Scheme: Retirement is meant to be spent happily, comfortably, securely, and with total dignity in the subcontinent. For millions of Indians, pensions continue to provide this critical support. The Employees’ Pension Scheme (EPS-95), which is administered by the Employees’ Provident Fund Organisation (EPFO), has had some recent happenings threatening to turn the tide for more than 78 lakh pensioners, possibly regarding their future.
With mounting demands for amending the current benefits, monumental Supreme Court orders, and the most recent EPFO move appear to change in favor of pensioners. This article discusses events of recent import and their implications for pensioners across the nation.
What’s New in the EPS-95 Pension Scheme?
Serious Advocacy for Minimum Pension Enhancement
As of now, EPS-95 provides a minimum pension of ₹ 1,000 per month only. Over the years and taking into account inflation and the increase in cost of living, the pensioners and their interest groups have been demanding an increase in the minimum pension amount.
Now, suddenly, this demand of increasing the same to ₹ 7,500 per month, plus Provident Fund-linked Dearness Allowance (DA), is gaining ground.
Key Features of the EPS-95 Scheme
| Feature | Description |
|---|---|
| Current Minimum Pension | ₹1,000/month |
| Proposed Minimum Pension | ₹7,500/month + DA |
| Beneficiaries | Over 78 lakh retirees |
| Contributors | Employer & Central Government |
| Retirement Age | 58 years |
| Online Application Launched | 2023 |
| Final Application Deadline | 31 January 2025 |
The Voices Behind the Movement
The EPS-95 Pensioners’ Agitation Committee has been instrumental in pushing for these reforms. Their main demands include:
- A guaranteed minimum pension of ₹7,500 per month
- Inclusion of Dearness Allowance to keep up with inflation
- Free medical facilities for pensioners and their spouses
- Correction of technical errors in pension applications
A Landmark Verdict by the Supreme Court
On November 4, 2022, the Supreme Court rendered a landmark judgment in favour of calculating pensions on higher salary payments, which thereafter laid the foundation of EPFO’s current higher pension policy.
Changes Brought About By The Supreme Court:
- Pension Calculation: Now calculated on a pro rata basis on higher salaries.
- Facility for Application: New online facility for joint application from employee and employer.
- Status of Applications: More than 17.48 lakh applications received; so far 21,885 orders for pension payment issued.
What Has EPFO Done Till Now?
EPFO took various initiatives to enable transition and help pensioners:
- Facilitated application submission online.
- Extended the cut-off date for applications until 31 January 2025.
- Organised constant monitoring of pending applications for speeding up the approval process.