ROURKELA: More than 30,000 retired and existing employees of Rourkela Steel Plant (RSP) have rested their hope on the Supreme Court to get increased pension under the Employees’ Pension Scheme (EPS)-95, a contributory pension programme.
SAIL has started the process to calculate the increased pension amount of its employees across the country in the event of the apex court’s verdict going in favour of the employees.
The EPS-95 was introduced across the country for PSU workers and private sector workers on November 16, 1995 as a statutory scheme under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952. But it was introduced in a contentious form by SAIL following which employees, after retirement, are getting paltry pension money between Rs 1,500 and Rs 3,000.
Treasurer of RSP Executives’ Association (RSPEA) Rajat Sahu said with Employees’ Provident Fund Organisation (EPFO) lacking adequate manpower and machinery to manage the scheme, it had allowed several PSUs, including SAIL, to form own PF Trusts to run the scheme and they were put under ‘Exempted PF Trusts’ category.
He said under EPS-95, an employee is contributing 8.35 per cent of a fixed amount of Rs 15,000 as SAIL and EPFO are reluctant to deduct 8.35 per cent on actual basic pay and Dearness Allowance (DA).
About 100 cases were filed across the country in different High Courts and Supreme Court. The apex court, in a verdict, had ruled that employees’ contribution be deducted on actual basic pay and DA, but the EPFO filed a review petition saying that SAIL comes under the ‘Exempted PF Trust category’ and it should not be applicable for SAIL employees. EPS-95 was closed in September 2014 and since then, there have been no new members, he said.
Meanwhile, the DGM (Personnel) of SAIL on July 1 communicated to all personnel departments of SAIL’s units and plants that EPFO has put employees of ‘Exempted PF Trusts’ in separate category and the Supreme Court verdict on the issue is pending. The letter also advised SAIL units and plants to calculate pension amount on actual basic pay and DA as a preparation in the event of Supreme Court verdict going in favour of employees of exempted category.
Earlier, BMS-affiliated Rourkela Ispat Karkhana Karmachari Sangh (RIKKS), the recognised trade union of RSP, and RSP Retired Employees’ Association had also filed cases in this regard in the courts.
Under EPS-95, an employee is contributing 8.35 per cent of a fixed amount of Rs15,000. SAIL and EPFO are reluctant to deduct 8.35 per cent on actual basic pay and DA.
About 100 cases were filed across the country in different High Courts and Supreme Court over the issue
EPS-95 was introduced across the country for PSU workers and private sector workers on Nov 16, 1995.