EPFO may fix minimum pension at Rs 1,000 per month next week
New Delhi: Retirement fund body EPFO may take a final decision on fixing the minimum pension for its subscribers at Rs 1,000 per month, during a meeting of the Central Board of Trustees (CBT) scheduled on February 22.
"The EPFO's apex decision making body the CBT could fix minimum pension at Rs 1,000 per month for its subscribers, at a meeting this month," All India Trade India Congress Secretary D L Sachdev said.
Sachdev, who is also an Employees' Provident Fund organisation (EPFO) trustee informed the proposal is listed on the agenda for the CBT meet on February 22.
The trustee said that CBT will also discuss the proposal to issue contribution cards similar to bank passbooks to its over 4.72 crore subscribers, which would be updated on monthly basis from April 1.
According to EPFO data, as of March 31, 2010, there were 35 lakh pensioners subscribed to the retirement fund body, of which 14 lakh persons get a monthly pension of less than Rs 500.
The number of EPFO pensioners getting a monthly pension of Rs 1,000 is 7 lakh. The data reveals there are cases where pensioners are getting a monthly pension as low as Rs 12 and Rs 38.
As per estimates, the proposal to hike the minimum pension to Rs 1,000 per month will require an additional contribution of 0.63 percent of subscribers' basic pay and
dearness allowance to the pension account.
The hike in contribution will be over-and-above the 8.33 percent contributed by employers toward the pension account of employees, as well as the 1.16 percent provided by the government under the scheme.