GS paper 3
Syllabus: Issues related to mobilization of resources, employment, EPS, Government budgeting etc
Direction: UPSC may ask about EPS Scheme etc
- Employees and pensioners in the Supreme Court on Thursday tore into the controversial amendments on “determination of pensionable salary” introduced into the Employees Pension Scheme (EPS) of 1995.
- Surplus money in the scheme: There is surplus money in the scheme. Government and EPFO are earning as interest is more than what they are paying as monthly pension, lawyer submitted.
- Clause 11(3) of the EPS-1995: The dispute revolved around the controversial amendments made to Clause 11(3) of the EPS-1995.
- The Kerala High Court had struck down the amendments, following which the EPFO had appealed in the Supreme Court.
- Extension of period of calculation of average salary from 12 months to 60 months: The pensionable salary was originally an average of 12 months’ pay before the date of the employee’s exit from the EPS.
- The amendments had extended the period of calculation of average salary from 12 months to 60 months.
- Further contribution of 1.16%: The amendment created an additional obligation for employees whose salaries exceeded the ₹15,000 ceiling, they had to contribute a further 1.16% of their salary in addition to their Employees Provident Fund contribution.
- The 1.16% contribution is contrary to the provisions of the Employees Provident Fund Act itself.
Q. Performance of welfare schemes that are implemented for vulnerable sections is not so effective due to absence of their awareness and active involvement at all stages of the policy process. Discuss(UPSC 2019)