Arbitrary and opaque: EPFO has tweaked pension scheme rules without wide consultations
The Employees' Provident Fund Organisation (EPFO)'s Central Board of Trustees (CBT) approved the Employees' Pension Scheme (EPS) 2026 without wide consultations, replacing the EPS 1995. This decision affects approximately 5.4 crore contributing members and 82 lakh pensioners, raising serious transparency concerns. Over the past decade, features of the EPS 1995 were altered to the detriment of employees, including limiting coverage to ₹15,000/month and changing pensionable salary calculation from 12 to 60 months. The new scheme removes the higher pension option, which was previously extended by Supreme Court intervention. The article criticizes EPFO's approach, stating that a positive mindset and empathy are needed, not just changes in laws.
Key Points
- The EPFO's Central Board of Trustees (CBT) approved the Employees' Pension Scheme (EPS) 2026 without consulting stakeholders, raising transparency concerns.
- The new scheme replaces EPS 1995 and impacts millions of contributing members and pensioners.
- Past changes to EPS 1995, such as limiting coverage to ₹15,000/month and altering salary calculation, have been detrimental to employees.
- The new EPS 2026 removes the option for higher pension, which was previously extended by Supreme Court intervention.
- The article suggests that a mere change of laws and procedures will not deliver desired results without empathy and a positive mindset from the government and EPFO.
Exam Facts
- The Employees' Pension Scheme (EPS) 2026 was approved on March 2.
- It replaces the EPS 1995 scheme and affects approximately 5.4 crore contributing members and 82 lakh pensioners.
- The pensionable salary calculation changed from the average pay in the last 12 months to 60 months.
- The PF contribution ceiling of ₹15,000 and minimum pension of ₹1,000 were fixed over 11 years ago.
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