Sunday, February 19, 2012

12 Rupees P.M. Pension to a Central Govt.M/O Labour & Employment, retiree?-Imagine the plight!

Minimum pension could be ` 1,000

RETIREMENT fund body Employees’ Provident Fund Organisation ( EPFO) may take a final decision on fixing the minimum pension for its subscribers at ` 1,000 per month during a meeting of the Central Board of Trustees ( CBT) scheduled on February 22.
EPFO’s apex decision- making body CBT could fix minimum pension at ` 1,000 per month for its subscribers at a meeting this month, All India Trade India Congress secretary D. L. Sachdev told reporters.
Sachdev, who is also an EPFO trustee, informed that the proposal is listed on the agenda for the CBT meeting.
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 ` 500.
The number of EPFO pensioners getting a monthly pension of ` 1,000 is seven lakh. The data reveals there are cases where pensioners are getting a monthly pension as low as ` 12 and ` 38. As per estimates, the proposal to hike the minimum pension to ` 1,000 per month will need an additional contribution of 0.63 per cent of subscribers’ basic pay and dearness allowance to pension account.
The hike in contribution will be over- and- above the 8.33 per cent contributed by employers towards the pension account of employees as well as the 1.16 per cent provided by the government under the scheme.
The other important move of the retirement fund body would be to start issuing contribution cards similar to bank passbook from April this year.
At present, it is mandatory for the employers to prepare ‘ Contribution Cards’ and update it every month as per the provisions of the Employees’ Provident Fund Scheme, 1952 though such cards are not provided to subscribers.

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