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AgelimitunderEPFOpensionschememayberaisedto60
PostaComment

ByPTI|15Feb,2015,02.47PMIST

NEWDELHI:RetirementfundbodyEPFO'strusteesinameetingonThursdaywillconsider
aproposaltoraisetheagelimitfrom58to60yearsforvestingofpensionunderthe
Employees'PensionScheme(EPS95).
Atpresent,aformalsectorworkercoveredundertheEPS95canmakecontributions
towardspensionschemetilltheageof58yearsandcanclaimpensionafterthat.
ThePensionImplementationCommittee(PIC)hasrecommendedanincreaseintheagefor
vestingpensionto60years,whilesuggestingthattheActuaryshouldbeaskedtodevelopa
modeltogiveincentivetothosepersonswhooptfordrawingpensionattheageof60
years.

RetirementfundbodyEPFO'strusteesinameetingon
Thursdaywillconsideraproposaltoraisetheagelimitfrom58

Anactuaryanalysesfinancialconsequencesofriskafterstudyinguncertainfutureevents,
particularlyofconcernstopensionandinsuranceplans.
Raisingtheagelimitwouldreducethedeficitinpensionfundandwouldincreasethe
pensionbenefitsofmembersastherewouldbetwoadditionalyearsofservice,asperthe
agendalistedforthemeetingoftheEmployees'ProvidentFundOrganisation's(EPFO)
apexdecisionmakingbodytheCentralBoardofTrustees(CBT).

to60yearsforvestingofpensionundertheEmployees'
PensionScheme(EPS95).

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Accordingtoareportofthevalueronthescheme,increasingtheagelimitwouldreducetheshortfallinthepensionfundtotheextendof
Rs27,067crore.
Thelevelofdeficitisnotamatterofconcern,thoughitisrecommendedthattheEPFOshouldlookintoinvestmentreturnsmorecarefully
anddonotincreasebenefitswithoutconsultingActuaryanddosensitivityanalysismorefrequently,thevaluerhassuggested.
AsperthetheValuerappointedbyEPFO,thenetliabilityordeficitisRs10,855croreasonMarch31,2012,Rs6,712.96croresason
March31,2013andRs7,832.74croresasonMarch31,2014.
Itisalsoproposedbythecommitteetoincreasetheshortservicepensionentitlementagefrom50yearsto55years.Thismeasurewould
reducetheshortfallinpensionfundtotheextentofRs12,028crores.
Atpresent,memberscanaskforfixingpensionatattainingtheageof50yearsprovidedtheyhaveservedforatleast10years.
Itisalsoproposedthatthepensionablesalaryshouldbedeterminedonthebasisof36monthsaveragewagesimmediatelyprecedingthe
dateofexitfromtheschemeinplaceofexisting60months.
ItmaybenotedthatthereisnobarofanykindforcontributingtowardsothersocialsecurityschemesrunbytheEmployees'Provident
FundOrganisation(EPFO)Employees'ProvidentFundScheme1952andEmployees'DepositLinkedInsuranceScheme1976.

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