The Central Council of the Employee Provident Fund Organization (EPFO) will resolve issues facing older people, as well as issues related to joint option forms by employees and employers, at a two-day meeting ending Tuesday. We discussed the necessary steps to Pensioners choosing a higher pension linked to their actual salary.
Some board members have provided details of pensioners who may have moved to other areas or whose employers may have ceased operations and how EPF members would be eligible if they chose a higher pension. I expressed concern about associating having to pay the balance.
Labor and Employment Minister Bhupender Yadav said the government was committed to implementing the Supreme Court’s decision on the issue of higher pensions. “This issue (higher pensions related to the Supreme Court decision) was discussed in detail at the CBT conference. We are committed to fully implementing it,” he said.
Although the financial implications of higher pension payments were not discussed at the meeting, one of the main concerns was the problems faced by older pensioners. workers may have moved to other areas away from their workplaces and companies may not have the data for them to choose joint options with their employers to choose higher pensions. We discussed.
“It was discussed that eligible persons should be paid after the SC judgment. The process should be simplified, especially in the case of the joint declaration. It was also discussed that it may be difficult to jointly offer options with employers to get higher pensions, as they are older and may have moved to another location. As companies are expected to keep data for 5-7 years, 2014 data may not be available to many such pensioners, so these issues need to be resolved. Yes,” said KE Raghunathan, a CBT member and employer representative.
Applications with higher payments will be scrutinized in detail after the May 3 deadline. “It’s not an easy process. How will the records of closed firms be accessed … Applications will be scrutinized after the deadline to scrutinize the number of eligible and non-eligible firms. A committee may be formed to investigate,” said CBT member and employee representative Harbhajan Singh Sidhu.
Those who choose the higher annuity option must either transfer a portion of the Provident Fund amount to the annuity side or deposit the remaining amount to begin annuity payments. “For higher pensions, employees must also obtain approval from their employers and pay membership fees. …that is questionable.
There were also protests by a group of EPF participants demanding an increase in the minimum pension of 1,000 rupees. “The minimum pension increase was discussed in 2019. Now it is 2023 and nothing has been done to increase the minimum pension,” said a CBT member.
This was the first CBT meeting at which a status note on pensions was discussed after EPFO allowed members of the Employees’ Pension Scheme a window until 3 May to choose a higher pension linked to their actual salary. is. The large actuarial deficit in EPS, reflecting the gap between the net present value of contributions and benefits, and the gradual increase in the number of pensioners going forward, will be addressed by the EPFO as it attempts to implement higher pension options. I have two main concerns. for subscribers.
Those who choose the higher annuity option will have to transfer part of their provident fund to the annuity side or deposit the remaining amount to start making pension payments, which will be a lengthy process. Board members said. “For higher pensions, employees must also obtain approval from their employers and pay membership fees. ..that is questionable.
There were also protests by a group of EPF participants calling for an increase in the minimum pension to Rs 1,000. “The minimum pension increase was discussed in 2019. Now it is 2023 and nothing has been done to increase the minimum pension,” said a CBT member.
This was the first CBT meeting at which a status note on pensions was discussed after EPFO allowed employees to choose a higher pension linked to their actual salary until May 3rd.
© Indian Express (P) Ltd
