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DMK MP highlights possibility of some post-2014 retirees getting left out of move on higher PF pension

DMK MP highlights possibility of some post-2014 retirees getting left out of move on higher PF pension

The Hindu
Monday, February 27, 2023 11:28 AM GMT

The MP, M. Shanmugam, has written to Union Labour Minister Bhupender Yadav in this regard, and has asked the government to clarify its stand on the issue

The DMK’s Member of Parliament, M. Shanmugam, has written to Union Labour Minister Bhupender Yadav, highlighting the possibility of several sections of post-2014 retirees, covered under the 1995 Employees’ Pension Scheme, getting left out of the present move on the provision of a higher Provident Fund (PF) pension.

Mr Shanmugam explained that all those who retired after September 1, 2014,  might not be in a position now to opt for the higher pension, as many of them would have drawn, at the time of their retirement, all the money that was accumulated in their PF accounts.  Given their present economic condition, they would not be in a position to give their consent.  In the process, the intended benefit may not reach all the deserving persons and the Supreme Court’s verdict of November 2022 might not get implemented in letter and spirit. 

In a letter sent to Mr Yadav a few days ago , the MP wanted to know whether, in respect of  those employees who earned  less than the pensionable salary and who earned more than the ceiling with their employers making PF contributions on their actual salary,  the government would keep the pension at 50% of the last drawn pay, subject to the minimum amount of pension of ₹9,000 per month.  

Besides, certain employees, who were entitled to get higher pensions till the statutory ceiling was ₹ 6,500 up to August 2014, lost their status since September that year after the increase in the ceiling to ₹ 15,000. Wondering how the PF authorities would treat the case of such employees, Mr. Shanmugam asked whether the government would devise an arrangement to enable them to opt for the higher pension.  In any case, the minimum pension should be  kept at ₹9,000 per month, he added.

Read full story on The Hindu
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