look news india
Good news for PF account holders: The government is considering some changes in the Employees’ Provident Fund Organization (EPFO) with a proposal to make pensions attractive. There is good news for PF account holders as it has been proposed to transfer the pension amount to their children after the death of pensioners and their spouses. In which the government is preparing to increase the minimum pension.
Labor Ministry’s view on EPS fund
The Labor Ministry is considering this proposal as very important to encourage and connect the EPF members to the pension scheme. In which the Ministry is preparing to rationalize the minimum pension, in which it is proposed to increase the existing minimum amount by Rs 1000. In order to strengthen the social security framework under EPF, the Labor Ministry is seriously considering giving the members the option to increase their contribution to the EPS fund for higher pension under the EPS-1995 scheme.
need to address concerns
According to media reports, the consultation on pension reforms has highlighted the need to address the concerns of members while making the pension scheme linked to the Employees’ Provident Fund attractive. During the high level deliberations and discussions, it has been stated that a large number of EPF members are in a dilemma that the amount deposited in the pension fund will not be refunded after the pension benefits.
Family pension will be given after death
A senior ministry official said the government’s view is clear that the pension fund money belongs to its members. Apart from this, it has to be clarified that pension fund holders get pension and after their death, the benefit of pension goes to the family of the spouse. When both the spouses die, the amount deposited in the pension fund will pass to their nominated-dependent children.
Regarding review of minimum amount
According to the ministry, such changes in EPF will increase the attraction of PF account holders towards the pension scheme. On the option of rationalizing pension, an official said, both the Labor Ministry and the Employees’ Provident Fund Organization are in favor of revising the existing minimum amount of pension.
On one hand, after the decision of the Supreme Court, people have started getting more pension under EPF. At the same time, some people are getting less pension even after working for years. Long service also needs to be included, so that this pension can be rationalized.
The minimum pension under EPF is currently only Rs 1000 per month. Important additional possibilities are being considered while reviewing it under the amendments. Although no decision has been taken regarding increase in the minimum monthly pension, as per the indications received from the Ministry, consideration is being given to making it respectable.