The monthly pension of workers under the Employees’ Pension Scheme (EPS) of the Employees’ Provident Fund Organisation cannot be linked to inflation, Shobha Karandlaje, union minister of state for labour and Employment, in a written reply in Lok Sabha on Monday. “EPS 95 is a defined contribution defined benefit scheme. Demand to link the monthly pension of workers under Employees’ Pension Scheme, 1995 (EPS-1995) with cost of living index was considered and it was not found feasible for a funded scheme like EPS-1995,” Karandlaje said.
“Therefore, the value of benefits cannot be left open ended by linking with inflation, which is variable,” she added.
A highly-powered monitoring committee was constituted by the government in 2018 for complete evaluation and review of EPS-1995 and the committee, after comprehensive review, ruled against it.
Meanwhile, the total number of new subscribers added to EPFO in 2023-24 stood at 10.9 million.