EPS-95 Pension Update: Government’s stand clear on increasing minimum pension; Big information given on ‘Higher Pension’ and deadline for depositing dues

New Delhi. For a long time, there has been a demand across the country to increase the minimum pension under EPS-95 from Rs 1,000 to Rs 7,500. On this issue, MP N.K. Responding to the pointed questions asked by Premachandran, the government has currently ruled out any immediate increase in the pension amount. The government clarified that any decision can be taken only after considering the sustainability of the pension fund and future liabilities. Government’s argument: Why is the minimum pension not increasing? The Labor Minister told the House that EPS-95 is a “Defined Contribution-Defined Benefit” scheme. This means that benefits are given on the basis of the amount of contribution deposited. Mathematics of funding: In this fund, the employer contributes 8.33% of the employee’s salary, while the central government contributes 1.16% (on salary up to Rs 15,000). Budgetary support: The government said that it is already making a separate budgetary provision to ensure a minimum pension of Rs 1,000 every month. Providing assistance.Financial burden: The government believes that increasing the pension amount without additional funding can lead to a crisis in the long-term sustainability of the pension fund.Latest update on Higher PensionAfter the Supreme Court’s historic decision of November 2022, the government shared important figures for those choosing ‘higher pension at higher salary’:Application status: About 15.24 lakh applications were received till January 31, 2025.Processing: More than 99.2% of the applications have been disposed of by March 9, 2026. PPO issued: Pension Payment Orders (PPO) are being issued for those who have retired and have deposited their arrears. Current employees will get PPO if they file a claim after the age of 58 years. Deadline for Depositing Dues: There was confusion among pensioners whether they will get more time to deposit the dues? Government clarified: Rules: Money will have to be deposited within three calendar months from the month of issue of demand letter. At present, the government does not have any proposal to extend this deadline. Why are the pensioners dissatisfied? The Pensioners Association argues that in the current inflationary period, the amount of Rs 1,000 per month is insufficient to live a “respectable life”. There is disappointment among the elderly across the country due to non-implementation of the recommendations of the High Empowered Monitoring Committee and postponing the demand for pension revision.