EPFO suspended 1000 rupees minimum monthly pension scheme
Government notification issued on 19 August 2014 said that the benefit of minimum pension was made effective from 1 September 2014 to 31 March 2015.
Employees' Provident Fund Organisation (EPFO), the retirement fund body, on 9 April 2015 suspended the 1000 rupees minimum monthly pension scheme from April 2015.
The end of the minimum monthly pension provided under Employee Pension Scheme (EPS)-95 will hit about 32 lakh pensioners.
The decision to suspend the scheme was taken because, as per EPFO circular, there was no communication or direction from the Union Government to continue this scheme beyond 31 March 2015.
The circular further said that the payment pension from the month of April 2015 will be released at earlier rates, that is, without minimum pension provision.
Union Government had issued a notification on 19 August 2014 to hike the pension amount to flat 1000 rupees per month for those who were getting less than 1000 rupees per month as pension. The benefit of the scheme was made effective from 1 September 2014 to 31 March 2015.
Employee Pension Scheme (EPS)-95
Employee Pension Scheme (EPS)-95 came into effect on 16 November 1995 and the scheme was launched under the Employees' Provident Funds and Miscellaneous Provisions Act, 1952.
The Scheme applies to the employees of all factories and other establishments to which the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 applies.
Under the scheme, monthly benefits for superannuation/ retirement, disability, survivor, widow(er), children is provided and the amount of pension is based on average salary during the preceding 12 months from the date of exit and total years of employment.
The scheme also provides for minimum pension on disablement and also provides for past service benefit to participants of erstwhile Family Pension Scheme, 1971.