In a move that will benefit 20 lakh pensioners, the Union Cabinet on Wednesday decided for the continuation of the minimum pension of Rs 1,000 per month to the pensioners of Employees’ Pension Scheme, 1995 (EPS) beyond the financial year 2014-15 on perpetual basis. Currently, it is effective only up to March, 2015.
Perpetual basis means, if someone has less than Rs 1,000 as monthly pension, the Government would pay the balance amount.
The Employees’ Provident Fund Organisation (EPFO) had to suspend the scheme in the absence of any direction from the Government to continue with this benefit beyond March 31. The scheme was launched with effect from September 2014, hiking the pension amount to a flat Rs 1,000 per month for those who were getting lower amount earlier.
The Cabinet also approved corresponding grant of continuous annual budgetary support for implementing the minimum pension, which will be to the tune of Rs 850 crore per year on a tapering basis. A large number of member pensioners under the EPS, 1995 receive low pensions, which is not commensurate with the growing cost of living.