Pension woes: The Centre must bring in transparency in scrutiny of pension claims, Pg 6

Key Highlights

Issues in EPS Implementation

• Standing Committee on Labour urges revision of ?1,000 minimum pension under Employees Pension Scheme (EPS), 1995unchanged since 2014.

• Government currently allocates ?980 annually per pensioner; panel calls for a threefold increase.

Government Contributions & Fund Allocation

• Govt contributes 1.16% of wages (capped at ?15,000) to EPS corpus.

• Allocation: ?9,250 crore in 2024-25; projected to cross ?10,000 crore in 2025-26.

Problems with High-Wage Pension Claims

• Applicants face unclear demands for arrears and contributions in lakhs.

• No official communication from EPFO; online portals lack accuracy.

• Exempted establishments have rejected or reversed sanctioned pensions arbitrarily.

Analysis & Way Forward

• Urgent need for transparent communication, simplified claim processes, and stakeholder consultation.

• Government should ensure predictability and dignity for pensioners, especially those from informal sectors.

Mains Mock Question:

"Evaluate the challenges in the implementation of the Employees Pension Scheme. What measures are needed to ensure transparency and fairness in pension disbursals?"