Hindi English Translation || Editorial || Pension concerns: On the EPFO recommendation

Pension concerns: On the EPFO recommendation

A hike in minimum pension will help the lower strata among the retired

The recommendation of the Central Board of Trustees of the Employees’ Provident Fund Organisation (EPFO) (कर्मचारी भविष्य निधि संगठन) for a 0.1-percentage-point increase in provident fund (PF) (भविष्य निधि) deposits for 2023-24 should not be surprising, as it is in tune with (in accordance with, in agreement with, in line with) what the EPFO did last year. However, the recommended rate of 8.25% is 0.4-percentage points (प्रतिशतता अंक) lower than in 2018-19, a pre-election year like 2023-24. If cleared (स्पष्ट करना) by the Union Finance Ministry, it will involve the transfer of a record ₹1,07,000 crore to EPF members. But the development (विकास) has not pleased (be agreeable to, satisfy, gratify, make happy) those with a long-standing (लंबे समय से) demand for an increase in the minimum pension of ₹1,000. When in the opposition, the ruling Bharatiya Janata Party had demanded that the pension be raised to ₹3,000 (the UPA government had proposed ₹1,000 a month). On coming to power in 2014, the BJP carried out faithfully (ईमानदारी से), with effect from September 2014, what was finalised by its predecessor (पूर्ववर्ती), benefitting approximately 20.5 lakh pensioners. Months ago, the Finance Ministry had rejected a proposal (प्रस्ताव) to double the minimum pension amount, citing a “huge rise” in the budgetary support needed under the Employees’ Pension Scheme (EPS) (EPF Pension which is technically known as EPS stands for Employees’ Pension Scheme and was launched in the year 1995 with the aim of helping employees in the organized sector. Employees who are eligible for the Employees Provident Fund (EPF) scheme shall also be eligible for EPS. Employees’ Pension Scheme is a social security scheme provided by the Employees’ Provident Fund Organisation (EPFO)), 1995. There is one more component (element, factor, aspect) in the budgetary support which refers to the Central government’s contribution at 1.16% of wages up to an amount of ₹15,000 a month. For FY2024-25, the Ministry has projected (परियोजना) ₹10,950 crore as budgetary support against the revised estimate of ₹ 9,760 crore for the current year. The Finance Ministry calculates that a 100% rise in the minimum pension would be more than the proportionate (equivalent, equal, corresponding, correspondent, comparable) increase in the overall budgetary support as numerous (many, a lot of) pensioners had received much less than ₹1,000 as monthly pension till 2014.

Describing the EPS as a “Defined Contribution-Defined Benefit” social security (सामाजिक सुरक्षा) scheme, the government said in the Rajya Sabha that all benefits were paid out of accumulations (collection, gathering, amassing, aggregation) through contributions, and as per the fund’s valuation as on March 31, 2019, there was “an actuarial deficit (it is defined as the difference between future Social Security obligations and the income rate of the Social Security Trust Fund as of current).” However, this argument has been virtually (लगभग) demolished in the EPFO’s annual report (2022-23). Notwithstanding (nevertheless, nonetheless in spite of this/that, regardless of this/that, even so) its reasons not to hike the minimum pension, the government must note that the difference between the minimum and original pension was about ₹970 crore for 2022-23. So, the doubling of minimum pension is no strain (pressure, tension, demands, burden, stress). There are other key (vital, important, essential, crucial) issues too such as equating (compare, relate, consider/regard as the same as) the amount of spouse (जीवनसाथी) pension on a par with (के समान) what a member-pensioner gets. In the case of higher PF pension, the rules have been framed (formulate, create, compose, think up, devise, form, work out) after the 2022 Supreme Court judgment wherein (जिसमें) most of the pre-2014 retirees (a person who has retired from employment) would not be covered; there are around (approximately) four lakh such applications for higher pension. A more expansive (extensive, wide-ranging, comprehensive, inclusive) approach to PF pension matters will help senior citizens.

Courtesy: The Hindu

Important Word List With Meaning

1.Employees’ Provident Fund Organisation (EPFO) (noun)

Hindi Meaning - कर्मचारी भविष्य निधि संगठन
English Meaning - The Employees Provident Fund Organisation (EPFO) is a statuary body which assists Central Board in administering compulsory contributory Provident Fund Scheme, Pension Scheme and Insurance Scheme for the workforce engaged in the organised sector in India. EPFO is one of the World’s largest Social Security Organisations in terms of clientele and the volume of financial transactions undertaken.

2.percentage point (noun)

Hindi Meaning - प्रतिशतता अंक
English Meaning - the difference between two percentages is termed as percentage point. (for example: “Interest Rates Jump From 10% to 12%”. In this case, the interest rate increased by “2 percentage points” or you can say that the interest rate is increased by 20%).

3.Provident Fund (PF) (noun)

Hindi Meaning - भविष्य निधि
English Meaning - a government-managed savings scheme, where you invest your money and benefit from the accumulated interest over time. Salaried employees get this lump sum amount once they retire or exit from employment.

4.clear (verb)

Hindi Meaning - स्पष्ट करना
English Meaning - give approval to, sanction, authorize, permit, allow, give consent to.

5.development (noun)

Hindi Meaning - विकास
English Meaning - turn of events, incident, occurrence, happening.

6.long-standing (adjective)

Hindi Meaning - लंबे समय से
English Meaning - constant, long-term, prevailing, persistent, continuing (for a long time).

7.faithfully (adverb)

Hindi Meaning - ईमानदारी से
English Meaning - exactly, correctly, accurately, precisely, acceptably, suitably, fittingly.

8.predecessor (noun)

Hindi Meaning - पूर्ववर्ती
English Meaning - a person/thing that comes before another one; forerunner, precursor.

9.proposal (noun)

Hindi Meaning - प्रस्ताव
English Meaning - recommendation.

10.project (verb)

Hindi Meaning - परियोजना
English Meaning - forecast, predict, estimate, calculate, gauge, reckon, expect.

11.social security (scheme/benefit) (noun)

Hindi Meaning - सामाजिक सुरक्षा
English Meaning - (In India) social security schemes/benefits cover these (Pension, Health Insurance, and Medical Benefit, Disability Benefit, Maternity Benefit, Gratuity) social insurances. Employers in the organized sector are entitled to coverage under these social security schemes. A large number of Indian workers in the unorganized/informal sector may not have an opportunity to participate in each of these schemes.

12.virtually (adverb)

Hindi Meaning - लगभग
English Meaning - practically, effectively, in effect, actually, in reality.

13.spouse (noun)

Hindi Meaning - जीवनसाथी
English Meaning - husband or wife.

14.on a par with (noun)

Hindi Meaning - के समान
English Meaning - as good as, comparable with, equivalent to, equal to, on a level with.

15.wherein (adverb)

Hindi Meaning - जिसमें
English Meaning - in which.

16.strata plural noun of stratum (noun)

English Meaning - level, class, echelon, rank, grade.

17.Central Board of Trustees, EPF (noun)

English Meaning - It is a statutory body constituted by the Central Government under the provisions of section 5A of the Employees’ Provident Funds and Miscellaneous Provisions Act,1952 (Act 19 of 1952). The tenure of the Board is five years.

18.in tune with (phrase)

English Meaning - in accordance with, in agreement with, in line with.

19.please (verb)

English Meaning - be agreeable to, satisfy, gratify, make happy.

20.carry out (verb)

English Meaning - implement, execute, perform, bring about, discharge.

21.cite (verb)

English Meaning - refer to, make reference to, mention, point to.

22.gross budgetary support (GBS) (noun)

English Meaning - The government’s support for the central plan is called the Gross Budgetary Support, or the GBS. Budgetary Support is earmarked for meeting the planned outlays (expenditures) of the Central government during the financial year. The central plan includes the GBS and the spending of the public enterprises that do not figure in the budget. The GBS includes the tax receipts and other sources of revenue raised by the Government.

23.Employees’ Pension Scheme (EPS) , 1995 (noun)

English Meaning - EPF Pension which is technically known as EPS stands for Employees’ Pension Scheme and was launched in the year 1995 with the aim of helping employees in the organized sector. Employees who are eligible for the Employees Provident Fund (EPF) scheme shall also be eligible for EPS. Employees’ Pension Scheme is a social security scheme provided by the Employees’ Provident Fund Organisation (EPFO).

24.component (noun)

English Meaning - element, factor, aspect.

25.proportionate (adjective)

English Meaning - equivalent, equal, corresponding, correspondent, comparable.

26.numerous (adjective)

English Meaning - many, a lot of.

27.Defined Contribution plan (noun)

English Meaning - it is a retirement plan where your maturity benefit depends on your investments in the plan. The investment or the contribution is usually predefined for you based on your income. The majority of retirement investment plans are defined contribution plans.

28.Defined Benefit plan (noun)

English Meaning - A defined benefit retirement plan is one where your maturity benefit, or benefit on retirement, has been defined. The benefit will be available to you regardless of your contribution to the plan. Benefits can be paid in a lump sum or as a regular pension. However, in any case, the benefits are only payable upon your superannuation (retirement) or relieving.

29.accumulation (noun)

English Meaning - collection, gathering, amassing, aggregation.

30.actuarial (adjective)

English Meaning - of or relating to actuaries (A person with expertise in the fields of economics, statistics and mathematics, who helps in risk assessment and estimation of premiums etc for an insurance business, is called an actuary).

31.actuarial deficit (noun)

English Meaning - it is defined as the difference between future Social Security obligations and the income rate of the Social Security Trust Fund as of current.

32.notwithstanding (adverb)

English Meaning - nevertheless, nonetheless in spite of this/that, regardless of this/that, even so.

33.strain (noun)

English Meaning - pressure, tension, demands, burden, stress.

34.key (adjective)

English Meaning - vital, important, essential, crucial.

35.equate (verb)

English Meaning - compare, relate, consider/regard as the same as.

36.frame (verb)

English Meaning - formulate, create, compose, think up, devise, form, work out.

37.retiree (noun)

English Meaning - a person who has retired from employment.