The Union Government on 1 September 2015 released 2000 crore rupees to Employee Pension Scheme, 1995 (EPS-95) as its contribution for the year 2015-16.
Further, a sum of 250 crore rupees was contributed as grant-in-aid for providing minimum pension of 1000 rupees to the pensioners of EPS-95.
The additional grant-in-aid became necessary as the Union Government directed the Employees' Provident Fund Organisation (EPFO) in September 2015 to provide for guaranteed minimum pension of 1000 rupees per month.
Employee Pension Scheme (EPS)-95
• It came into effect on 16 November 1995 and the scheme was launched under the Employees' Provident Funds and Miscellaneous Provisions Act, 1952.
• It applies to the employees of all factories and other establishments to which the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 applies.
• The Union Government and employers contribute 1.16 percent and 8.33 percent of the monthly wages of the members respectively.
• 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.
• It also provides for minimum pension on disablement and also provides for past service benefit to participants of erstwhile Family Pension Scheme, 1971.
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When: 1 September 2015