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Wednesday, December 21, 2011

Amendment in the Pension Scheme

Pension under the Employees’ Pension Scheme, 1995 is linked with pensionable service and pensionable salary. As per Section 6A of the Employees’ Provident Funds & Miscellaneous Provisions Act, 1952, contribution in Employees’ Pension Fund is mandated @ 8.33% of wages which is restricted up to wage ceiling of Rs.6500/- only. However, option is available to the member to contribute at the higher rate than the wage ceiling (i.e. Rs. 6500/-) which entitles him/her for a higher pension.
The Central Government had constituted an Expert Committee for revision of Pension. The Expert Committee submitted its report to the Central Government on 5th August, 2010 and the recommendations of the Committee were placed before the Central Board of Trustees, Employees’ Provident Fund [CBT) EPF)] for consideration on 15th September, 2010. The CBT (EPF) directed that the report be first considered by the Pension Implementation Committee (PIC). The PIC has since finalized its report and sent it to Employees’ Provident Fund Organization for placing before the CBT (EPF) for taking a final decision in the matter in its ensuing meeting.
The Union Labour & Employment Minister Shri Mallikarjun Kharge gave this information in reply to a written question the in Rajya Sabha today.
Source : PIB Release, December 21, 2011

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