The National Confederation of Pensioners’ Associations (NCPA) has called on the Employees’ Provident Fund Organisation (EPFO) to withdraw its January 2025 circular regarding higher pension claims under the Employees’ Pension Scheme, 1995 (EPS-95). The NCPA's memorandum, issued on November 10 from Bhilai, Chhattisgarh, criticizes the EPFO for rejecting numerous pension claims and pursuing litigation against retirees.
Key Details
The NCPA argues that the EPFO is misapplying historical rules of exempted provident fund trusts to deny claims for higher pensions, despite contributions being made on actual salaries. The organization contends that these internal rules should not override statutory provisions. The ongoing dispute follows a Supreme Court ruling in November 2022, which upheld amendments to the EPS allowing certain employees to opt for pension contributions based on higher wages.
Background
In a related development, the EPFO has shifted the venue of its upcoming Central Board of Trustees (CBT) meeting to New Delhi on November 19, 2026. This meeting is expected to address the possibility of increasing the minimum monthly pension from ₹1,000 to ₹3,000, although this proposal has not yet been officially confirmed. Reports suggest that the Labour Ministry may have reached an agreement with the Finance Ministry on the pension increase after discussions between the two bodies. The current minimum pension has been in place since 2014, and pensioners have consistently advocated for a revision.
The proposed increase in the minimum pension could affect the financial outlook for pension funds and related assets, as it may lead to higher liabilities for the EPFO. Investors will watch for the outcome of the November 19 CBT meeting, which could provide clarity on the government's decision regarding the pension increase.
Based on reporting by: livemint.com