The Union cabinet on Wednesday approved continuation of the minimum pension of Rs 1,000 per month beyond 2014-15 on a perpetual basis, benefitting about 20 lakh retirees covered under the pension scheme run by the Employees' Provident Fund Organisation. Providing a minimum pension of Rs 1,000 per month is an effort to provide meaningful subsistence to pensioners who have served in the organized sector," the government said in a statement.
The cabinet also approved Rs 850 crore per year grant to meet the liability on a tapering basis, it said.
The Employees' Pension Scheme, 1995 (EPS), which was effective from September 2014, had expired on March 31, 2015, after which EPFO had restored to the earlier provision that had led to widespread protests from trade unions.
The UPA-II government had in February 2014 accorded approval to the proposal for ensuring a minimum pension of Rs 1,000 per month for the pensioners of EPS for 2014-15 and provided a budgetary support of Rs 1,217.03 crore.
However, the proposal could only be implemented by the BJP-led NDA government with effect from September 1 last year after necessary amendments to the EPS Act.
@courtesy Economics Times