EPFO to consider raising retirement age to 60 years

Employees’ Provident Fund Organisation (EPFO) apex decision making body the Central Board of Trustee (CBT) will consider a proposal to raise the retirement age of organised sector workers to 60 years for its pension at a meeting scheduled for Wednesday.

Besides, the CBT in this meeting will also deliberate on a proposal to withdraw two years bonus under the pension scheme provided to subscribers after rendering 20 years of pensionable service.

These proposals are included in the agenda for the CBT meeting scheduled for February 5 to be chaired by Labour Minister Oscar Fernandes.

At present, under the Employee’ Pension Scheme(EPS-95), the subscribers of (EPFO) cease to be a member of the pension scheme and can apply for fixation of his/her pension. Thus, he cannot contribute to the scheme after the age of 58 years.

However, there is no age bar for contributing to the Employees’ Provident Fund Scheme (EPF) 1952 and Employees’ Deposit Linked Insurance (EDLI) Scheme 1976 run by the EPFO, an official said.

The Finance Ministry in its memorandum to Labour Ministry has proposed these amendments in the EPS-95 after giving its concurrence for providing a minimum entitlement of Rs 1,000 minimum monthly pension under the scheme.The Finance Ministry is of the view that raising the retirement age for this purpose will help subscribers accumulate a bigger corpus while delaying the pay-out by two years.

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