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October 21, 2020

EPFO wants subscribers to take pension at the age of 60

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The Employee Provident Fund Organization (EPFO) may soon raise a proposal under which the superannuation age for taking pension of subscribers will be increased from 58 years to 60 years. However, subscribers will be given a chance to opt for this change. With such an option, the beneficiary will get an opportunity to increase the pension fund. The EPFO ​​may also offer additional bonuses for pensioners at an older age.

The changes proposed by the EPFO ​​in the EPF and MP Act 1952 stated, ‘Superannuation age is 58 years. It needs to done for 60 years. Most pension funds in the world are giving pension after 65 years. ET has seen a copy of this proposal.

EPFO believes that the pensionable age under EPFO ​​should be done on the lines of Government Pension Scheme and National Pension System, of which the superannuation age is 60 years.

Employee Provident Fund Organization wants subscribers to take a pension at the age of 60

A senior government official told ET that the proposal put up at a meeting of the Central Board of Trustees in November. He said, “After getting approval from the board, the proposal sent to the Labor Ministry for cabinet approval.

” EPFO believes that increasing the age limit will reduce the deficit in pension funds by Rs 30000 crore. At the same time, pension benefits for members will increase as two additional years of service will be found.

Pensionable salary limit of Rs. 15000

According to the Employees Pension Scheme 1995, the employer contributes 8.33 percent of the employee’s salary. However, the pensionable salary limit is Rs 15000.

The beneficiary entitled to an EPS pension for working more than 10 years till the age of 50 or at the age of 58. Those who have less than 10 years of service.  However, have been unemployed for more than two months can withdraw the EPS amount.

The proposal first extended in 2015, but not considered by the government then. There are around 60 lakh pensioners under the EPS-95 scheme. It has a pension fund of Rs 3 lakh crore. Brijesh Upadhyay, general secretary of the Bharatiya Mazdoor Sangh, said, ‘We are in favor of this proposal. This work should have done long ago. Increasing the tenure for two years will greatly increase the pensionable amount of employees.

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