No consensus on sharing cost of Rs 1,000 minimum monthly pension

The Employees Provident Fund Organisation (EPFO) trustees failed to arrive at a consensus on sharing the burden of a minimum monthly pension of Rs 1,000 for 50 million subscribers.

Briefing the media in Chennai after the meeting on Friday, the Union Labour Minister, Mr Mallikarjun Kharge, said “We discussed (pension) and now we are working out some proposal, and will put it before the Government.”

The agenda of the meet had put forth two options for raising funds to meet the additional burden. One option was to reduce the entitlement age of the pensioner from 58 years at present to 60 years. The other was to withdraw the bonus of two years given to workers who contribute for more than 20 years to the pension scheme.

But, workers' representatives opposed this. Mr D.L. Sachdeva, All India Trade Union Congress leader and member of the Central Board of Trustees, told

Business Line , “We want all the stakeholders to share the burden. But, employers and the Governments do not want to do so. By bringing in these two options, they want the workers to fully fund the additional amount.” He said this was not fair, as workers were already reeling under the pressure of rising inflation and falling income.

Mr Sachdeva said “The minister has assured us that he will find a way out to give minimum pension without withdrawal of any benefit to subscribers under the scheme,” he added.

Mr Kharge said: “We have requested employers, employees and the Government — all three together (that) -- if they contribute a small amount each ... that will solve the problem”.

As on March 31, 2010, there were 35 lakh pensioners, of which 14 lakh persons get a monthly pension of less than Rs 500, according to EPFO data. In some cases, pensioners get a measly amount of Rs 12 and Rs 38.

The number of EPFO pensioners getting a monthly pension of Rs 1,000 is only seven lakh.

>aditi.n@thehindu.co.in