EPFO defers decision on min monthly pension of Rs 1,000

Retirement fund manager EPFO today deferred its decision on the proposal for fixing the minimum monthly pension for its 50 million subscribers at Rs 1,000 because of differences among trustees over sharing of additional financial burden.

"We discussed (pension) and now we are working out some proposal and we will put it before the government," Labour Minister Mallikarjun Kharge told reporters here.

The unionist present in the meeting opposed the EPFO's proposal of meeting the additional financial burden by either raising retirement age for pension to 60 years from 58 years or withdrawal of the two-year bonus on completion of 20 years of pensionable service.

According to the Employees' Provident Fund Organisation (EPFO), either of the two options would help in ensuring minimum pension at Rs 1,000 per month to subscribers without any additional burden on employers, employees or the government.

Kharge said: "We have also requested employers, employees and the government - all three together (that) if they contribute a small amount each ... that will solve the problem".
Admitting that the proposal was being delayed, the Minister said he would also take up the issue with the Finance Ministry for ensuring minimum pension for EPFO subscribers at Rs 1000 per month.

"The alternatives suggested by EPFO are not in the interest of workers and therefore we opposed those," All India Trade Union Congress Secretary D L Sachdev said.

"The minister has assured us that he will discuss again with the government to find a way out to give minimum pension without withdrawal of any benefit to the subscribers under the scheme," he added.