EPS pension: The Union Labour Ministry has provided explanations on the minimum pension eligibility requirements for members in different situations and the criteria for pension entitlement under EPS 95. Shobha Karandlaje, Minister of State for Labour and Employment, has outlined the eligibility criteria for EPS 95 pensions in the Lok Sabha.
This was in reply to MP Daroga Prasad Saroj and MP Sanjay Haribhau Jadhav's questions regarding the Employees’ Pension Scheme (EPS) 1995.
The EPS-95 was established in 1995 with the objective of providing a safety net for employees in the formal sector. Initially, employers were mandated to allocate 8.33% of their workers' salaries to EPS, capped at a maximum monthly wage of Rs 15,000.
The parliamentarians inquired about the policy and criteria for awarding pensions under the scheme, and whether there were any plans to revise these provisions. They also asked if the government had conducted any investigations or reviews of EPS 95 pensioner cases, and requested details on the reviews conducted and the total number of cases examined.
What the govt said
To be eligible for superannuation benefits through the Employees' Pension Scheme (EPS) 1995, individuals must have at least 10 years of service and reach the age of 58. Those who choose early retirement can do so after reaching 50, but their pension amount will be reduced by 4% for each year they are under 58. However, in situations of disability or death, there are no age or service requirements—benefits are available to members or their beneficiaries with just one month of contributions.
Karandlaje said: “On cessation of employment before completing 58 years a member can opt for early pension. Such early pension can be availed only after completing 50 years of age subject to a pension being reduced at the rate of 4% for every year falling short of 58 years.”
She added that as of September 1, 2014, the government has implemented a policy guaranteeing a minimum monthly pension of Rs 1,000 for elderly individuals, disabled persons, widows, or nominees. In addition, orphans are entitled to receive Rs 750 per month, while children can receive Rs 250 per month.
“The Central Government is providing a minimum pension of Rs 1,000/- per month to member/disabled member/widow(er)/nominee/dependent parent pensioners; Rs 750/- per month for orphan pensioners and Rs 250/- per month for children pensioners w.e.f. 01.09.2014,” the minister said.
Revision of pension amounts
The minister said the government is not planning any official changes to current pension policies. She affirmed that the EPS 95 scheme offers extensive social security coverage for elderly individuals.
In response to queries regarding additional benefits under the revised EPS 95 scheme, the minister mentioned the inclusion of health services. However, no comprehensive details have been provided regarding the implementation or extent of these benefits.
She further added that investigations and reviews of EPS 95 cases are being carried out as necessary. The specifics of these cases and their outcomes differ from state to state, although precise information on an updated pension issuance date or the number of beneficiaries has not been disclosed. This lack of information applies to inquiries regarding states such as Maharashtra and Uttar Pradesh.