The Central Board of Trustees (CBT), the apex decision making body of the EPFO, will consider various options for sharing the additional burden for ensuring minimum monthly pension for its subscribers.
As per the agenda of the CBT meeting, Employees Provident Fund Organisation (EPFO) has suggested that either retirement age for pension be raised to 60 years from 58 years or the two-year bonus on completion of 20 years of pensionable service be withdrawn.
Either of the two decisions, it added, would help in ensuring minimum pension at Rs 1,000 per month to subscribers without any additional burden on employers, employees or the government.
After discussion with Labour Ministry on the issue, EPFO has suggested two options to CBT for ensuring minimum pension of Rs 1,000 per month.
However, according to the unionists, either of the two options to ensure minimum pension would affect subscribers and that they will oppose the move during the trustees meeting on May 25.
"If the retirement age is increased to 60, then the workers would have to contribute for two more years. In case the two years bonus is withdrawn then their pension would be fixed at a lower level as per the formula for the calculation for the pension," All India Trade Union Congress Secretary D L Sachdev said.
"We will oppose the two moves suggested by the EPFO for ensuring minimum pension at Rs 1,000 per month," he added. (MORE)