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To strengthen social security, proposals are being seriously considered to make the pension of the Employees' Provident Fund Organization (EPFO) attractive by making major changes to it. In this sequence, the most important proposal is to give the amount deposited in the pension fund to the children of the EPF pensioner and his life partner after their death.

The Labor Ministry is considering this proposal very important to encourage EPF members to join the pension scheme. The ministry is considering rationalizing the low pension even after a long service period, which also includes a proposal to increase the minimum pension amount of Rs 1,000 at present.

Consideration on making the pension scheme attractive

To strengthen the social security structure under EPF, the Labor Ministry is seriously considering giving the members the option to increase their contribution to the EPS fund for higher pensions under the EPS-1995 scheme. According to sources, during these consultations related to pension reforms, the need to make the pension scheme related to the Employees' Provident Fund attractive as well as to address the concerns of its members was expressed.

During the discussions held at the top level, it was clearly stated that a large number of EPF members are confused that their money deposited in the pension fund will not be returned after pension benefits. A senior official of the ministry said that the government's opinion is clear that the amount of pension corpus belongs to its members.

In such a situation, to end this dilemma, along with the necessary reforms, it will have to be made clear that they will get a pension from the amount deposited in the pension fund and after their death, the husband or wife will get the benefit of family pension. After the death of both, the remaining deposit amount of the pension fund will be given to their nominated dependent children.

A decision will also be taken to increase the minimum pension.
The ministry believes that after this major change in the form of EPS, the attraction of its members towards this pension scheme will increase. Regarding the options to make the pension rational, the official said that both the Ministry of Labor and the Employees Provident Fund Organization are in favor of reviewing the current minimum amount of pension.

It is also felt necessary that in the context of the decision of the apex court, on one hand, people have started getting higher pensions under EPF, while on the other hand, many people are getting fewer pensions even after working for years. In such a situation, it is necessary to make the long service period a factor so that this pension can be made rational.

The minimum pension under EPF is currently only one thousand rupees per month and under the reforms while reviewing it, the possibilities of significant increase are being considered. However, no amount of increase in the minimum monthly pension has been decided, but according to the indications received from the ministry, it is being considered to make it respectable.