The woes of pensioners and PF members
The HinduThe Employees’ Provident Fund Organisation ’s recent clarification on the implementation of the 2022 Supreme Court verdict on higher Provident Fund pension seems to have added to the woes of pensioners and PF members. Issues in pension computation In the most contentious matter of pension computation, the clarification, which states that pension will be calculated as per paragraph 12 of the EPS, also says that the date of commencement of pension will determine the applicable formula for calculation of pensionable service, pensionable salary, and pension. The clarification is also silent on when the EPFO will start disbursing higher PF pension, as there are reports of some pensioners getting a higher amount. But in March 2022, the BJP-led government informed the Rajya Sabha that the High Empowered Monitoring Committee had stated that doing this was “not feasible in view of actuarial position.” At present, the government’s contributions — around ₹8,715 crore for 2022-23 — are in two forms: the government pays 1.16% of the wages of up to ₹15,000 a month as subsidy for contribution towards EPS and additional budgetary support to ensure payment of the minimum monthly pension of ₹1,000 in respect of those who would otherwise be getting less.