Monday, February 20, 2012

EPFO may fix minimum pension at Rs 1000 per month

EPFO may fix minimum pension at Rs.1,000 per month

The Hindu Feb 20 2012

Board meeting will discuss proposal to issue contribution cards
similar to bank passbooks

Retirement fund body EPFO (Employees' Provident Fund of India) may
take a final decision on fixing the minimum pension for its
subscribers at Rs.1,000 per month, at a meeting of the Central Board
of Trustees (CBT) scheduled on February 22.

"The EPFO's apex decision-making body the CBT could fix minimum
pension at Rs.1,000 per month for its subscribers, at a meeting this
month," All India Trade India Congress Secretary D.L. Sachdev told
PTI.

Mr. Sachdev, who is also an EPFO trustee, said the proposal was listed
on the agenda for the CBT meet on February 22.

The trustee said the CBT would also discuss the proposal to issue
contribution cards similar to bank passbooks to its over 4.72 crore
subscribers, which would be updated on a monthly basis from April 1.

According to EPFO data, as of March 31, 2010, there were 35 lakh
pensioners subscribed to the retirement fund body, of which 14 lakh
persons get a monthly pension of less than Rs. 500.

The number of EPFO pensioners getting a monthly pension of Rs.1,000 is
7 lakh. The data reveals there are cases where pensioners are getting
a monthly pension as low as Rs. 12 and Rs. 38.

As per estimates, the proposal to hike the minimum pension to Rs.1,000
per month will require an additional contribution of 0.63 per cent of
subscribers' basic pay and dearness allowance to the pension account.

The hike in contribution will be over and above the 8.33 per cent
contributed by employers toward the pension account of employees, as
well as the 1.16 per cent provided by the government under the scheme.

Keywords: EPFO, Central Board of Trustees, minimum pension

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Dr P Vyasamoorthy, 30 Gruhalakshmi Colony Secunderabad 500015 Ph
040-27846631 / 9490804278. The reason for a headache is that you have
a head.

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