Parliamentary Panel Seeks Clarification From Finance Minister For Rejecting EPFO Update

The Finance Ministry dismissed the proposal of the Labour Ministry to increase the EPFO’s pension. Hence, the Parliamentary Standing Committee of Labour, chaired by BJD MP Bhartruhari Mahtab, asked the ministry to clarify its stand. The current pension under the EPFO is Rs 1000 and a proposal by the Labour Ministry demands a hike in the pension. The increment proposed by the Labour Ministry could not be confirmed.

On Thursday, officials from the Labour Ministry and Employees Provident Fund Organisation briefed the chairman Bhartruhari Mahtab about the rejection of the proposal. Besides this, officials enlighten the chairman on the operation of the EPF pension scheme and the management of its corpus fund. A source from the Labour Ministry confirmed that top officials from the Finance Ministry will be summoned to clarify their move.

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Earlier, the Labour Ministry formulated a high-powered committee for the evaluation and review of the Employees Pension Scheme (EPS), 1995. The report recommended increasing the monthly pension of the member/widow/widower. It also suggested pegging the pension at Rs 2000 per month. Committee members called a pension of Rs 1000 to be grossly inadequate.

Apart from the Parliamentary panel clarification, EPFO has appealed in the Supreme Court against a Kerala High Court decision. They aim to set aside the amendments on the determination of pensionable salary under the Employees Pension Scheme of 1995 as ultra vires. The Supreme Court will pronounce its decision on November 4. The case of EPFO is heard by the bench led by CJI U.U. Lalit, Justices Aniruddha Bose and Sudhanshu Dhulia.

Senior advocate Aryama Sundaram and advocate Rohini Musa representing EPFO said during the hearing that the EPS system will face a complete collapse if the Kerala High Court judgment was allowed to hold the fort.

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