EPFO  Suspends  Rs.1,000 Minimum  Monthly Pension Scheme

Retirement  fund body EPFO has suspended the Rs.1,000=  minimum monthly pension scheme from this month. The decision will hit 32 lakh pensioners.The scheme was launched with effect from September 2014. The pension amount was hiked to a flat Rs.1,000= per month for those who were getting lower amount earlier.

It is learnt that the EPFO has decided to suspend the scheme in the absence of any direction from the government to continue this benefit beyond March 31.

According to the government notification issued on August 19 last year the benefit of minimum pension was made effective from September 1 to March, 2015.

The cabinet will soon consider the Labour Ministry’s  proposal to extend the minimum pension of Rs.1000= per month to workers till perpetuity as indecision on this score has led to strong protests from the trade unions.

Though there is a budgetary provision for the same in this year’s budget, the Labour ministry is not authorised to use this money till cabinet approves it.

The proposal is likely to be taken up by the cabinet next week after Prime Minister Narendra Modi returns from three- nation tour.

source: The Economic Times, New Delhi, April 10, 2015 page13 and the Economic Times 15 April 2015 page13