The proposal to increase the superannuation age for drawing pension under the scheme is expected to help a beneficiary grow his/her pension kitty, while also aiding the pension fund in reducing its deficit. The EPFO could also offer incentives, such as additional bonus, to those who agree to draw their pension at 60.
“Age of superannuation, which is 58 years, needs to be increased to 60 years as most of the pension funds world over, are giving pension after 65 years,” the retirement fund manager said in amendments proposed to the EPF Act, 1952. ET has seen a copy of the proposal.
EPFO is of the view that the pensionable age should be aligned to the government pension scheme and the National Pension System, where the superannuation age is 60 years.
A senior government official told ET that the proposal will be presented to the EPFO’s Central Board of Trustees at the next meeting, expected in November.
“Once approved by CBT, the proposal will be sent by the labour ministry for Cabinet approval,” the official said on condition of anonymity.
According to the EPFO, raising the age limit will cut the pension fund’s deficit by Rs 30,000 crore and will increase benefits to members since they would have two additional years of service.
As per the Employees’ Pension Scheme, 1995, an employer contributes 8.33% of an employee’s salary to pension, with a ceiling on pensionable salary at Rs 15,000.
“We are in support of the proposal. In fact, it should have been done long back as this will benefit pensioners with significant increase in their pensionable amount by extending the tenure for two years,” said Vrijesh Upadhyay, general secretary of the Bharatiya Mazdoor Sangh.
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10 Comments on this Story
Ramakrishna Kambhampati102 days ago
Demand for an increase in monthly pension for EPF members to a minimum Rs.6000 and that is a demand for a long time. There is a discussion in public, media, and political circles that Mr.Modi's government will double EPF pensions for its members. How the government thinks that with Rs.1500to Rs.3000 pensions will feed people and that amount is not sufficient to buy medicines in old age. It is foolish for people to think we will preserve money for two more years to get a meager Rs.100 or 200 increase in pension.
Rema Vijayan297 days ago
Has this increase in EPFO been implemented. My EPF is still the same.
Monoranjan Bezboruah399 days ago
India has never lacked the brains, it lacked a truly National Government in New Delhi. Erstwhile Congress Governments of MMS was a sham--the Italian Broad ruled India to India''s detriment. Now, GOI must gallop ahead and give Indians in India the fillip to develop, design, research, manufacture and improve upon as many Defense related items as possible. Government of India must watch out against the depraved thinking of many Babus who would try to torpedo this Move to Develop, Make, and Advance in India by Indian move for a few bucks on the side from vested foreign ennnuchs! The portents are good, and GOI must Move Ahead with gusto!