Working on details of minimum pension of Rs 1,000: Govt

Jaitley has made an initial provision of Rs 250 crore for providing the minimum entitlement under the pension scheme run by the EPFO

Government is working on its decision to provide minimum monthly pension of Rs 1,000 under the Employees' Pension Scheme-1995 (EPS-95) run by retirement fund body EPFO, Parliament was informed today.

Finance Minister Arun Jaitley had announced the decision in his Budget 2014-15 speech last week to provide Rs 1,000 as minimum pension under EPS-95. It will immediately benefit about 28 lakh pensioners, including 5 lakh widows. In all, there are 44 lakh pensioners under the EPFO scheme.

"The minimum monthly pension shall be Rs 1,000 per month to members and widow(er) pensioners under EPS-95 for the financial year 2014-15," Minister of State for Labour Vishnu Deo Sai said in a written reply to the Rajya Sabha.

On whether it would be (implemented) retrospectively, the minister replied, "The details are being worked out".

Jaitley has made an initial provision of Rs 250 crore for providing the minimum entitlement under the pension scheme run by the Employees' Provident Fund Organisation.

However as per the EPFO estimates, about Rs 1,217 crore is required to provide minimum monthly pension of Rs 1,000 under the EPS-95

The minister also informed the House that the number of persons expected to be benefited under the EPS-95 from this notification (to provide minimum pension of Rs 1,000) is 28 lakh approximately.

Meanwhile, replying to another question, on raising of rate interest on PF deposits for EPFO subscribers for current fiscal to 9 per cent from 8.75 per cent provided in 2013-14, Sai said there is no such proposal under consideration.