EPFO approves Rs 1,000 minimum monthly pension

February 28, 2014

PensionNew Delhi, Feb 28: Trustees of retirement fund body EPFO Thursday approved a proposal to provide a monthly pension of minimum Rs 1,000, a decision that will immediately benefit about its 28 lakh pensioners.

The Central Board of Trustees (CBT), the apex decision making body of EPFO also decided to raise the monthly wage ceiling to Rs 15,000 from Rs 6,500 by amending the EPF scheme, 1952, so that more workers can be brought under its various social security programmes.

"The board has decided to approve the proposed amendments in the schemes to ensure that Rs 1,000 minimum monthly pension under EPS-95 and also increased the wage ceiling to Rs 15,000 per month," Labour Minister Oscar Fernandes, who chaired the CBT meeting, told reporters here.

At present, workers getting basic wages, including basic pay and DA, of up to Rs 6,500 are covered under the ambit of Employees' Provident Fund Organisation (EPFO).

According an EPFO official, the Labour Ministry will soon move proposal before the Union Cabinet for its approval for the Rs 1,000 minimum monthly pension as the government would have to make fund provisions for the purpose.

"We have also reduced the administrative charges paid by the employers. Their burden would increase with the increase in wage ceiling," the Minister said.

The board has also decided to reduce administrative charges from 1.10 percent of the basic wage, including basic pay and dearness allowance, to 0.85 percent.

Besides, the trustees have also approved a proposed change in the methodology of computing the pensionable salary.

The pensionable salary will be calculated on the basis of average salary of the last 60 months instead of 12 months as provided in the EPS-95.

However, the proposed change in the methodology for computing pensionable salary was approved with a dissent note from the trade unionist members of the CBT.

The Employee Provident Fund Organisation (EPFO) runs social security programmes Employees' Provident Fund Scheme 1952, Employees' Pension Scheme 1995 and Employees' Deposit Linked Insurance Scheme 1976.

"Unionists have opposed the proposed amendment to the methodology for computing pensionable salary. I have suggested use of average salary of 24 months for the purpose," D L Sachdev, a trustee, who is the All-India Trade Union Secretary said.

He said unionists also expressed reservations about the Finance Ministry suggestions to withdraw two year bonus under the EPS-95 provided to subscribers who render 20 years of pensionable service.

However, the CBT did not take any decision regarding bonus under Employee Pension Scheme, 1995 (EPS-95). The trustee also deferred a decision on the proposal to increase retirement age under the scheme to 60 years from 58 years.

At present, under EPS-95, the EPFO subscribers cease to be a member of EPS-95 after attaining the age of 58 years and can apply for fixation of his/her pension thereafter.

However, there is no age bar for contributing to the EPF and EDLI schemes run by the EPFO.

The government would have to provide an additional amount of Rs 1,217 crore to ensure the minimum pension of Rs 1,000 starting 2014-15. Pensioners are, therefore, expected to get benefit with effect from April 1 this year. The proposal has already been approved by the Finance Ministry.

The move to ensure Rs 1,000 minimum pension under EPS-95 will immediately benefit about 28 lakh pensioners including five lakh widows. There are about 44 lakh pensioners.

The decisions regarding wage ceiling, reduction in administrative charges for employers and change in the methodology for computing pensionable salary can be notified and implemented by the Labour Ministry.

The proposal for raising wage ceiling to Rs 15,000 is expected to bring in 50 lakh more workers under the ambit of schemes run by EPFO.

The minister also launched a software to monitor the compliance by the employers under the social security schemes run by the EPFO.

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News Network
March 4,2020

Bhopal, Mar 4: Madhya Pradesh Chief Minister  Kamal Nath on Tuesday asserted that there was no threat to his government.

Nath's comments came when he was asked about reports of alleged 'poaching' attempts being made by the opposition BJP in the state.

“The legislators are telling me that they are being offered so much money. I am telling the MLAs to take it, if they are getting this free money,” Nath told reporters here on the sidelines of a programme.

Congress veteran Digvijaya Singh on Monday alleged that his party MLAs were being offered “huge money by BJP leaders” as part of the saffron party's “poaching” attempt to destablise the Kamal Nath government.

When Nath was asked about any threat to the stability of his government in Madhya Pradesh, he said, “There is nothing to worry about.”

Reacting to Nath's statement, state BJP spokesman Rajneesh Agrawal told PTI that his party has nothing to do with the allegations.

“In fact, these speculations and allegations are part of the internal bickering of among Congress leaders to get nominated for the Rajya Sabha polls,” he said.

After Digvijaya Singh's remarks on Monday, senior BJP leader and former chief minister Shivraj Singh Chouhan accused the Congress veteran of making false statements to create sensationalism.

“Speaking lies to create sensationalism is Digvijaya's habit. Probably some of his (Digivijaya's) works were not done and he wants to create pressure on the CM to get them done,” Chouhan alleged.

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News Network
June 8,2020

Jun 8: Petrol and diesel prices were hiked by 60 paisa per litre on Monday, for the second day in a row, as state-owned oil firms reverted to daily price revisions after a 83-day hiatus.

Petrol price in Delhi was hiked to Rs 72.46 per litre from Rs 71.86 on Sunday, while diesel rates were increased to Rs 70.59 a litre from Rs 69.99, according to a price notification of state oil marketing companies.

This is the second daily increase in rates in a row. Oil companies had on Sunday raised prices by 60 paisa per litre on both petrol and diesel after ending a 83-day hiatus in daily rate revision.

Daily price revision has restarted, an oil company official said.

While oil PSUs have regularly revised ATF and LPG prices, they had since March 16 kept petrol and diesel prices on hold, ostensibly on account of extreme volatility in the international oil markets.

Auto fuel prices were frozen soon after the government raised excise duty on petrol and diesel by Rs 3 per litre each to mop up gains arising from falling international rates.

The government on May 6 again raised excise duties by Rs 10 per litre on petrol and Rs 13 per litre on diesel.

Oil companies, instead of passing on the excise hike to consumers, decided to adjust them against the reduction required because of the drop in international oil prices. They used the same tool and did not pass on the Re 1 per litre hike required for switching over to ultra-clean BS-VI grade fuel from April 1.

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News Network
June 19,2020

Jun 19: Ten Indian Army soldiers including four officers were released by the China’s People’s Liberation Army (PLA) on Friday capping three days of hard negotiations that followed the bloody battle at the eastern Ladakh’s Galwan valley on Monday.

The 10 jawans returned around 5.30 PM on Friday to Patrol Point 14 (PP-14) after Indian team leader Major Gen. Abhijit Bapat, the commanding officer of the Third Div made it clear to the Chinese that there couldn’t be any progress in the disengagement talks unless the soldiers were returned safely.

Asked to comment on the release of Indian soldiers, the Indian Army maintained silence. The force released a brief statement on Thursday stating that all its men were accounted for.

However, the extent of the brutal clash can be gauged from the fact that 76 Indian Army soldiers are still in the hospital out of which 58 soldiers have “minor injuries” and “should be back on duty within a week”, according to Army sources.

Return of the Indian soldiers has been the main point of negotiations for the last two days. The situation is now calmer at areas near PP-14 in the Galwan valley after the return of Indian soldiers even though large numbers of troops from both sides are still present in the area.

Meanwhile analysis of satellite images has revealed a large presence of Chinese troops in the northern banks of Pangong Tso, a disputed territory for years.

“In the past month, Chinese forces have become an overwhelming majority in the disputed areas (on the north bank of the 135 km long lake). Significant positions have been constructed between Fingers 4 and 5, including around 500 structures, fortified trenches and a new boat shed over 20 km further forward than previously. More structures appear to be under construction,” says a report published in the Strategist, the journal of the Australian Strategic Policy Institute.

“The scale and provocative nature of these new Chinese outposts is hard to overstate: 53 different forward positions have been built, including 19 that sit exactly on the ridge line separating Indian and Chinese patrols,” says the report, accompanied by satellite images showing overwhelming PLA presence.

The June 6 Corps Commander level meeting between the Indian and PLA armies did not result in a solution to the contentious muscle flexing by the Chinese on the shores of the Pangong lake. The meeting ended with the conclusion that more Lt Gen level talks between the two armies were needed to resolve such issues.

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