A RIGHT, NOT CHARITY

₹ 1,000 and less! Some 37 lakh senior citizens and their dependents survive on this monthly pittance called pension from the Employees’ Pension Scheme 1995 of the EPF Act 1952. They have to manage their food, clothing, medicine, and all other geriatric care needs within this provision.

- PSM Rao

They deserve a higher minimum pension, not simply because the amount is so paltry and they are senior citizens. No. They are entitled to it because they have toiled all their productive lives for the creation of wealth and have sacrificed a part of the employer’s share of PF contribution to build a robust pension fund.

Without any of these ~ contribution or work—many of the poor in the country get much bigger support during their old age. For instance, the AP and Telangana governments give a welfare pension of ₹4,000; still more in certain cases in these states. Similarly, the state and Central government employees get a good amount of pension. The MPs and MLAs, too, get a pension; some of them who functioned in both roles at different times get two pensions. All their pension schemes have much bigger minimum provisions than the EPF minimum.

So, it is the EPF pensioners’ right to get an adequate pension, not some charity demand out of anybody's compassion. No argument against the claim is tenable and just. Funds’ shortage and nonviability of the scheme and similar claims for not raising EPF minimum pension, concerning 5.39 crore members under EPF Pension Scheme and more than 81 lakh pensioners at present, therefore, are absolutely wrong and untenable. The government takes shelter under its inability, usually based on three impediments.

The EPF pension scheme is based on defined contribution and defined benefit. In other words, it is predetermined as to how much contribution is to be pooled in the fund and how much pension is to be paid out of it. So, no scope for an increase; it is the first and foremost objection.