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  • Category: Miscellaneous
    Points:5

    Do we not deserve better provident fund benefits?

    The purpose of this thread is not to indulge in any political discourse. Neither am I talking about something that has not happened. It has already happened, and the change introduced has made a big hole in the retirement corpus as the basic salary has been fixed at a particular level. For example, even if my basic salary is Rs60000, I will get a PF contribution of just Rs1800 from my employer, while I can contribute more amounts into the PF kitty on my own. However, even here there is a catch. PF contributions over a particular limit are now taxable.

    The unjust restriction and new method of PF calculation has been received very well by employers, as their costs will come down. The key question is that at a time when inflation has already gone out of control, is it not cruel that the only long-term benefit at the time of retirement, the PF, is also reduced?

    Already, the PF pension is so little and the Supreme Court judgement to revise it, has not been implemented at all.

    To repeat a point once again, the fact that I will get very less when compared to the previous situation, will make my retirement life that much harder.

    Well, members may please note that I have not written something that has not happened.

    Given the realities, what is your response?
  • #779108

    Points:5
    Many things are relative. The retirement benefits are mostly to the employees in organised sector. For those who do not have any post retirement benefit even an amount f Rs1800/- will appear attractive. At the same time there are many who get a god amount of post retirement benefits in lump sum and/or as monthly income. So i is reallya mixed bag.
    That is why Central and State governments have designed welfare measures for the employees of unorganized sector for some relief in their old age. They are known as " Kshema Nidhi's, 'Vaardhakya pension' etc. The National Pension Scheme is also one in that way akin to PF/Pension benefits.

    Now coming to the matter referred in the thread , there are some anomalies in the revised or new system and procedure. There are many court cases also on the matter. Sometimes the court orders also add to confusion, as they may pertain to individual grievances only. There is a gap in the perception and approach by the EPF authorities, Employers, Government and the Trade unions. Even the actuarial calculations and projections are also not satisfying all the concerned sides.

    But things have improved as now the portion of employer/govt contributions have been raised. Let us hope things will improve in due course and at the earliest.

  • #779110

    Points:5
    The author has raised a very pertinent point that the post - retirement benefits retired from the different public sectors should be more or less the same if the employees joining the two different organizations have the same qualifications, experience and duration of services.
    However, it is not so since the different sectors follow the different patterns of pensions as agreed by the different unions.
    The executives and workers retired from DVC, Coal India and other reputed sectors can have a significant amount of their retired people where as the officers and workers of other organizations cannot get more than Rs 3000/- per month as pension amount.
    Despite the assurance of the management multiple times, no concrete result has emerged. The condition becomes more pathetic if such retired people are not supported by their children due to various reasons. It is a matter of great surprise that no solution has come up so far for the redressal of the retired people.

  • #779117

    Points:5
    There is a lot of confusion in the matter of EPF pension. There is a court verdict again there is a stay and again there is a verdict. What the author said about pensions is true. The amount we get is much less when compared to the money that has gone to the government from our employer's contribution. If there is no such pension scheme and all my employer's contributions are coming back to me, I may be getting more interest than what pension I am getting today and the principle amount will come back to me when I want. This EPF was introduced in 1995 and from there, it continued without any changes.
    NPS appears to be good and people who are now in their early career can think of going for this so that their retirement life will be much better. If the government considers revision in the EPF pension many private employees who were retired will get benefitted.
    drrao
    always confident

  • #779118

    Points:5
    The author raised a good and valid point. But in fact, though the act of Provident Fund enacted in the year 1952, the gist of the act is not properly understood by the employees as well employers. There is a maxim 'ignorentia juris non execusat' but many of us do not know the importance of the provident fund and they are very much concentrating in withdrawing the accumulations once they depart a job. Nobody guiding them to get the accumulations transferred into the pf account with new employment. Many people do not withdraw or transfer their funds also. In such a situation the government has no option to fix a ceiling for PF.
    Now that a verdict of Supreme Court depicts the contribution of Pension fund for the full salary without any ceiling.
    So here the employers should first aware this is a statutory and meant for social welfare of employees. Then they can convey this to the employees also.

  • #779120

    Points:4
    EPF pension has been a matter of great debate and confusion and is discussed by the retired employees often. There are many retired employees who are getting a small EPF pension ranging from Rs 600 to 2000 per month depending upon their levels and contributions made. While the Govt employees get pensions in the range Rs 30000 to 100000, the EPF pension recipients get only a small amount. People will argue that those are different things but a pension is a pension and the purpose is to provide support in old age.
    There are many legal cases in progress regarding the anomalies in EPF pension and what the courts would be finally directing would be an important verdict in the matter.
    Thoughts exchanged is knowledge gained.


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