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Rediff.com  » Business » Cabinet may approve Rs 1,000/month min pension tomorrow

Cabinet may approve Rs 1,000/month min pension tomorrow

February 27, 2014 19:32 IST

PensionUnion Cabinet is likely to approve on Friday the proposal to ensure Rs 1,000 minimum monthly pension under the pension scheme run by retirement fund body EPFO, which would immediately benefit 28 lakh (2.8 million) pensioners.

According to sources, the proposal is listed in the agenda of the meeting of the Union Cabinet scheduled for Friday.

The move to ensure Rs 1,000 minimum pension under Employees' Pension Scheme-95 will immediately benefit about 28 lakh pensioners, including 500,000 widows.

There are about 44 lakh (4.4 million) pensioners.

Earlier this month the Employees' Provident Fund Organisation's trustees had approved the proposal to provide an entitlement of minimum monthly pension of Rs 1,000.

The Central Board of Trustees, the apex decision making body of EPFO had met on February 5, and decided to amend the EPS-95 scheme for the purpose.

The proposal would be placed 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.

The government would have to provide an additional amount of Rs 1,217 crore (rs 12.17 billion) to ensure the minimum pension of Rs 1,000 starting 2014-15.

Pensioners are, therefore, expected to get benefit with effect from April 1.

The proposal has already been approved by the Finance Ministry.

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