The Employee's Pension Scheme 95 has completed 25 years on 16 November 2020 I have tried to evaluate it's performance during the period of 25 years by giving facts and figures from various Reports .
PERFORMANCE EVALUATION AND ANALYSIS
Pension scheme was drafted by EPFO with the help of Actuary's.That too could not be introduced for about two and half months as various Labour Unions and organizations demanded the pension as third benefit without diverting any contribution from Provident Fund of the member's ultimately when 4 month's were left to the next General parliamentary Election in 1996 the Government Of India took a bold step ignoring all hurdles promulgating an ordinance on 16/11/1995 amending the EPF & MP Act 1952 facilitating the Government Of India to introduce the Employee's Pension Scheme 1995 with effect from 16/11/1995 All the assets and liabilities of the old scheme were transferred and undertook by the Employee's Pension fund.
The Performance Of EPS95 at a Glance
Exempted Organization
1996--97---- 2970
2018--19-----3514
Un Exempted
1996--97-----274585
2018--19-----1230768
Total Organization
1996--97------277555
2018--19------229193593
Member's Of Pension
Member
1996--97----66369
2018--19----4325413
Spouse
1996--97----26689
2018--19----1477583
Children
1996--97----27181
2018--97----573580
Other
1996--97----238
2018--19----75170
Contribution Employer Share
1996--97----2445.11 ( Rup.in cr.)
2018--19----40259.74 (Rup.in cr.)
Contribution Goverment Share
1996--97----345.96 (Rup.in Cr..)
2018--19----6401.90 (Rup.in Cr.)
Total Contribution
1996--97----2791.77 (Rup.in Cr.)
2018--19---46661.64 (Rup.in.Cr.)
Intrest earned
1996--97----981.76 (Rup.in.Cr.)
2018--19----32982.68 (Rup.in Cr )
Corpus as end of the financial year
1996--97-----11639.82 (Rup.in cr.)
2018--19-----437762.54 (Rup.in Cr.)
Pension Disbursed
1996--97------182.14 ( Rup.in Cr.)
2018--19------11207.34 (Rup.in.Cr.)
Withdrawal Benefits
1996--97------107.01 ( Rup.in Cr.)
2018--19------7636.41 (Rup.in Cr.)
Total 1996--97------289.15 (Rup.in Cr.)
2018--19------18843.75 (Rup.in Cr.)
Valuation of pension fund
Provision;--Eps95 is a funded scheme with combined features of defined benifits and defined contribution.According to the scheme prescribes the rate of contribution payable as well as the scale of benefits admissible A provision has been made under para 32 of the Eps95 for annual valuation of Eps95 by an actuary appointed by Central Government.
Valuation Of Funds
Intrest
1996---97-----727.88 (Rup.in cr.)
2018--19------32879.12 (Rup.in Cr.)
Pension s
1996--97------297.97 (Rup.in Cr.)
2018--19------18843.75 (Rup.in Cr.)
Surplus Amount
1996--97------424.91.(Rup.in cr.)
2018--19------104918.44 (Rup.in Cr.)
(1) The Eps95 corpus is added every year by the contribution received in and not a single paisa is paid out of contribution
( 2) The accumulated corpus of contribution earns intrest and gets a handsome return from the investment made
( 3 ) While exhibiting income and expenditure, surplus of income is added. In to the corpus every year. thus it is managed to show scarcity of the funds for payment of pensions and other benefits including higher pension too. Instead of benefit have been curtailed.
( 4 ) Data of above believe the cry of EPFO as well as the Government of India for diminishing funds which bound to collapse after few years.
( 5 ) From the above data it can be clearly be observed that out--payments during the 25 years never excepted 60℅ of the intrest income .It means every year there is a surplus of income and at the end of the financial year. 2018--19 there was an accumulated surplus of Rup.104918.44 crores ( This does not included intrest earned by this surplus every year ) obviously that intrest has become the part of corpus.
(6 )This surplus was tactically ,rather cleverly reported as negative to show a cloudy pictures with the help of actuary's who was bound to report as such by which mandated revision of pension etc.given by para 32 of the Eps95 can be denied.
(7 ) By showing this surplus as negative the EPFO and Government of India trying to go to the extent to nullifying sarcasm to the Supreme Court judgment dated 4/ 10/2016 in the case of R.C.Gupta which allowed pension on higher salary after getting corresponding contribution in to the Eps95 fund.
About lying in in operative account
( Formerly known as un claimed deposit account )
1996--97-----83.65 (Rup.in cr..)
2018--19-----1238.37 (Rup.in cr.)
Amount transfered to operative member s account during the year 2018---19 is Rup.52919.80 ( Rup. In cr.)
Above-mentioned facts, figure and performance evaluation and analaysis report show the sound position of the fund after 25 years now Government has to take a decision on this issue as early as possible
V. M. Tendulkar
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