On Monday, NK Premachandran of the Revolutionary Socialist Party (RSP) called for the immediate implementation of the enhanced pension scheme, as approved by the Supreme Court.
The Court’s ruling on November 4, 2022, allowed existing employees to opt for a higher pension under the Employees’ Pension Scheme (EPS) of 1995.
Premachandran emphasized that employees are entitled to the benefits of a higher pension under the scheme.
Slow Pace of Pension Approvals
Raising the issue during Zero Hour, Premachandran criticized the slow progress in processing applications for higher pensions.
“In parliament, NK Premachandran urged the government to implement the Supreme Court-approved enhanced pension scheme under EPS 1995. He highlighted the low disbursement rate of higher pensions despite numerous applications. Separately, Arun Govil advocated for standard contracts and social security benefits for film and television technicians and support staff to prevent exploitation”
He pointed out that, as of August 7, 2024, only 8,401 out of 17,48,775 applications had been approved by the Employees’ Provident Fund Organisation (EPFO).
He urged the government to take immediate action to ensure that all eligible employees receive their enhanced pension benefits without further delay.
Concerns Over Pension Calculation Methods
In addition to the implementation delay, Premachandran raised concerns about the current pension calculation methods under EPS 1995.
He called on the government to review and reconsider the approach used to determine pension amounts, highlighting that the current system might not adequately address the retirement needs of employees in the organized sector.
The Employees’ Pension Scheme (EPS-95), launched by the EPFO on November 19, 1995, is a social security program for employees in the organized sector.
It ensures financial security post-retirement, offering pension benefits to eligible employees who have contributed to the scheme and meet the specified criteria.
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