Parliament of India Rajya Sabha

Home , Bhagat Singh Koshyari, Murli Deora

REPORT NO. 147

COMMITTEE ON PETITIONS

ONE HUNDRED AND FORTY SEVENTH REPORT

Petition Praying for Amendment in the Employees Pension Scheme, 1995

(Presented on 3rd September, 2013)

Rajya Sabha Secretariat, New Delhi September, 2013/Bhadra, 1935 (Saka) Website : http://rajyasabha.nic.in E-Mail : [email protected] Hindi version of this publication is also available

PARLIAMENT OF INDIA RAJYA SABHA

COMMITTEE ON PETITIONS

ONE HUNDRED AND FORTY SEVENTH REPORT

Petition Praying for Amendment in the Employees Pension Scheme, 1995

(Presented on 3rd September, 2013)

Rajya Sabha Secretariat, New Delhi September, 2013/Bhadra, 1935 (Saka) CONTENTS

PAGES

1. COMPOSITION OF THE COMMITTEE...... (i)-(ii)

2. INTRODUCTION...... (iii)-(iv)

3. ACRONYMS...... (v)

4. REPORT...... 1-7

5. APPENDICES......

(i) Petition submitted by Shri Prakash Javadekar, Member, Rajya Sabha praying for amendment in the Employees Pension Scheme, 1995...... 18-20

(ii) Comments on petition received from Ministry of Labour and Employment ...... 21-23

(iii) List of Representatives of associations and individuals appeared before the Corther...... 24

6. MINUTES...... 25-40 COMPOSITION OF THE COMMITTEE (2011-12)

1. Shri Bhagat Singh Koshyari ------Chairman 2. Shri Nandi Yellaiah 3. Shri Avinash Pande 4. Shri Rajaram 5. Shri Paul Manoj Pandian 6. Shri P. Rajeeve 7. Shri Ram Vilas Paswan 8. Shri Murli Deora 9. Shri V.P. Singh Badnore 10. Shri Darshan Singh Yadav

(i) COMPOSITION OF THE COMMITTEE (Re-constituted w.e.f. 8th May, 2013)

1. Shri Bhagat Singh Koshyari ------Chairman 2. Shri V.P. Singh Badnore 3. Shri Husain Dalwai 4. Dr. Akhilesh Das Gupta 5. Shri Paul Manoj Pandian 6. Shri P. Rajeeve 7. Shri Palvai Govardhan Reddy ∗8. Shri Avinash Pande 9. Shri Arvind Kumar Singh 10. Shri A.V. Swamy

SECRETARIAT 1. Shri Alok Chatterjee, Joint Secretary 2. Shri Rakesh Naithani, Joint Director 3. Shri Rajendra Tiwari, Deputy Director 4. Shri Goutam Kumar, Assistant Director

*Nominated w.e.f. 22nd July, 2013

(ii) INTRODUCTION

I, the Chairman of the Committee on Petitions, having been authorized by the Committee to submit the Report on its behalf, do hereby present this One Hundred and Forty Seventh Report of the Committee on the petition signed by Shri Prakash Javadekar, MP, Rajya Sabha praying for amendment in the Employees Pension Scheme, 1995.

2. The petition was admitted by Hon’ble Chairman, Rajya Sabha on 7th November, 2012 under the provisions of Chapter-X of the Rules of Procedure and Conduct of Business in Council of States (Rajya Sabha). In accordance with Rule 142 of the said Rules, the petition was presented to the Council on 23rd November, 2012 by Shri Prakash Javadekar, after which it stood referred to the Committee on Petitions for examination and report in terms of Rule 150 ibid.

3. The Committee issued a Press Communiqué inviting suggestions from individuals/organisations on the subject matter of the petition. In response thereto, more than one thousand memoranda were received by the Secretariat. The Secretariat scrutinized those memoranda and a gist of the same has been suitably incorporated in the Report.

4. The Committee heard the petitioner on the petition in its sitting held on 3rd January, 2013. The Committee heard the Secretary, Ministry of Labour & Employment on 5th February, 2013. The Committee also heard the representatives of selected NGOs/individuals, who had submitted their memoranda on the issues raised in the petition in its sitting held on 29th July, 2013. It considered the draft Report in its sitting held on 29th August, 2013 and adopted the same.

5. The Committee while formulating its observations/ recommendations, has relied on the written comments of the concerned Ministry, oral evidence

(iii) (vi) of witnesses, observations of the Members of the Committee and interaction with others.

6. For facility of reference and convenience, the observations and recommendations of the Committee have been printed in bold letters in the Report in separate paragraphs.

NEW DELHI ; BHAGAT SINGH KOSHYARI August, 29, 2013 Chairman, Bhadra 7, 1935 (Saka) Committee on Petitions ACRONYMS

EPS : Employees Pension Scheme PIC : Pension Implementation Committee CBT : Central Board of Trustees EPFO : Employees Provident Fund Organization CoS : Committee of Secretaries EFPS : Employees Family Pension Scheme RPFC : Regional Provident Fund Cell EPF : Employees Provident Fund EDLI : Employees Deposit Linked Insurance ILO : International Labour Organization PROST : Pension Reform Options Software Toolkit CPI : Consumer Price Index

(v) REPORT

A petition signed by Shri Prakash Javadekar, MP, Rajya Sabha praying for amendment in the Employees Pension Scheme, 1995 was submitted to the Council of States on 14th May, 2012 (Appendix-I). The petition essentially aims towards providing a better pension to the employees who are members of the Employees Pension Scheme, 1995. The petitioner’s contention is that the Employees Pension Scheme, 1995 which was framed under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 seeks to provide social security benefits to the employees. Soon after the launch of Family Pension Scheme 1971, demands were made that the old age security benefit should also be provided to its members upon retirement/superannuation and in case of contingences like disability etc. The Government acceded to these demands by notifying a new Scheme w.e.f. 16.11.1995, called the Employees’ Pension Scheme, 1995 replacing the erstwhile Family Pension Scheme, 1971 and the net assets of the Family Pension Scheme 1971 were transferred to Employees’ Pension Fund.

1.1 Initially, the Employees’ Pension Scheme, 1995 was a family pension scheme but, later, it was converted into a regular pension scheme for employees who drew salary less than Rs.6500 per month. The scheme is mandatory on all establishments having 20+ employees and which do not have separate pension scheme of their own. Presently, around 5.5 cr employees are enrolled under the scheme and their contribution is @8.33%. The employer also contributes @8.33%, however, the Government is contributing only @1.16%. As on date, approximately 36 lakhs retired employees are getting pension under this scheme. Out of them, more than 30 lakhs get less than Rs. 1000 per month and more than 25 lakhs out of the said 30 lakhs pensioners get less than Rs.500 per month. This is too meager an amount particularly when some States are giving pension at higher rates than this to the elderly under their old age pension 2 schemes. The petitioner is of the view that the amount of pension is awfully inadequate and insufficient for survival of a family anywhere in the country. Accordingly, the petitioner has made following prayers:-

i) Government should contribute @8.33% in the EPS-95 making equal contribution from the employee, the employer and the Government.

ii) Ensure minimum pension of Rs.3000 or more.

iii) The necessary budgetary support should be given.

iv) Workers should be allowed to choose from various pension plans.

v) Restore all the facilities withdrawn through various Government orders like commutation, withdrawal, etc.

vi) EPS-95 pension should be indexed with inflation.

2. The Ministry of Labour and Employment, which the nodal Ministry on the subject matter of the petition in their response has submitted that an Expert Committee constituted for reviewing the Employees’ Pension Scheme, 1995 had submitted their report to the Government and its recommendations are under consideration of Pension Implementation Committee (PIC), a sub - Committee of the Central Board of Trustees (CBT), Employees Provident Fund Organisation (EPFO). This matter was discussed in the 198th and 199th meeting of CBT (EPFO) but the discussion remained inconclusive. The Ministry has also submitted the following points for consideration the Committee:----

(i) The matter of ensuring minimum pension of Rs.1000/- by raising existing Government contribution from 1.16% to 1.79% has been taken up with the Ministry of Finance. This would result in increase in Government’s contribution from the existing Rs.990 cr. to Rs.1533 cr. The option to authorize the employer to divert 1.16% extra from employer’s contribution so that the total contribution 3

remains 9.49% in case of voluntary contribution over the wage ceiling.

(ii) For budgetary support to the scheme, the matter has been taken up with Ministry of Finance.

(iii) Government had resorted to withdrawal of some facilities under the Scheme in order to wipe out the actuarial deficit in the pension fund. From the year 2001 onwards, the valuation had shown a continuous deficit in pension fund due to unusually high incidence of early withdrawal payments, generous benefits, high life expectancy, falling interest rates from 12% per annum in 1996 to less than 8% per annum in 2006 which had an adverse impact on the earnings and consequently on the monthly pension amounts. This has also resulted in high actuarial deficits basically because of the wide spread of benefits. Apart from this, wage ceiling was raised from Rs.5000 to Rs.6500 without being backed up by an actuarial advice. This means that statutory limit was increased in 2001 from Rs.5000 to Rs.6500 without actuarial advice and this has injected an instant actuarial deficit to the tune of Rs.10,000 cr. In the EPS-95 Fund as no provision was made to obtain the contributions on the enhanced salary for the earlier period of service already put in on which the benefits would eventually be paid at the time of superannuation.

(iv) It is not possible to index the pension fund with inflation since the same is determined by factors namely, (a) pensionable service of the member, (b) pensionable salary of the member, (c) past service, if any, and (d) age.

Petitioner’s oral submission (3rd January, 2013)

3. The petitioner while deposing before the Committee has submitted that the Employees Pension Scheme, 1995, covers every establishment having more 4 than 20 employees which are not covered under any other pension scheme, eg. many States Public Sector Undertakings, small industries, media houses, private offices, individuals employed at petrol pumps, malls, shops, restaurants and contract labourer, etc. He further informed that as per statistics available, there are 4.1 million retired pensioners and out of that 4.1 million pensioners, 3 million get less than Rs.1000 per month as their pension and out of those 3 million pensioners, 1.5 million pensioners get less than Rs. 500 per month as pension under this EPS-95. He submitted that the said scheme which was aimed to provide adequate pension has actually not been able to provide adequate financial support to the retired employees’ families. He, accordingly, requested that the Government should review the present scheme which is plagued by various lacunae such as static pension, coverage deficiency, and actuarial deficit etc. The petitioner pleaded that the Government must increase its contribution towards EPS-95 from existing 1.16% to 8.33% and ensure minimum pension of Rs.3000 or more per month to the retired employees.

Deposition of Secretary, Ministry of Labour and Employment (5th February, 2013)

4. The Secretary, Ministry of Labour and Employment submitted before the Committee that Employees’ Pension Scheme, 1995 had been conceived as a defined contribution and defined benefit social insurance scheme formulated following actuarial principles for ensuring long term financial sustenance. The scheme is financed through contribution from the employers at the rate of 8.33% of the wages of employees while the Central Government contributes 1.16% of the wages of the employees. The amount of pensionary benefits can be increased either by increasing the rate of contribution of the employer or the Government or both or pooling the surplus, if any, generated in the Pension Fund. He also stated that the pension fund has shown a continuous actuarial deficit since 2001.

4.1 Secretary further submitted that an expert Committee consisting of actuaries, experts from social security and insurance sectors and stakeholders 5 was constituted in June, 2009 to review the Employees Pension Scheme, 95. The recommendations of the Expert committee were submitted to the Central Board of Trustees (CBT), Employees Provident Fund Organization for consideration on 15th September, 2010. The matter was referred to Pension Implementation Committee (PIC), a sub Committee of CBT. PIC recommended that the minimum monthly pension under EPS, 95 be increased to Rs.1000/- as an interim measure by enhancing the rate of contribution into EPS, 95 by 0.63%. The recommendation of PIC was sent to EPFO for consideration of the CBT. The matter was included in the agenda for 198th and 199th meeting of CBT (EPFO) held on 22.2.2012 and 25.5.2012, respectively. However, the discussions remained inconclusive and the Board deferred the discussion. As no consensus could emerge in the CBT on who should bear the cost of increasing the minimum pension to Rs.1000/-, the Ministry of Labour and Employment held separate meetings with the Employers’ and Employees’ representatives of CBT to evolve a consensus in the matter but without any result. Therefore, the Ministry decided to request the Government to bear the extra contribution of 0.63% so as to assure a minimum pension of Rs.1000/- for pensioner of EPS-95. Accordingly, the Labour and Employment Minister requested to the Finance Minister to enhance the Government contribution from the present level of 1.16% to 1.79% of wages vide his letter dated 19.4.2012. However, Minister of State for Finance vide his letter dated 16.7.2012, informed that Ministry of Finance was unable to accede to our proposal in view of growing financial deficit in EPS.

4.2 In view of the importance attached to the matter of ensuring a minimum pension of Rs.1000/- to pensioners of EPS -95 by the Ministry of Labour and Employment, it was decided to put up the matter to Union Cabinet for a decision. A Cabinet Note was sent to the Cabinet Secretariat by the Ministry on 12.10.2012 for being placed before the Union Cabinet. The Cabinet Secretariat, vide their I.D. Note dated 12.11.2012, directed that the Prime Minister’s Office has desired that the issue be examined by a Committee of Secretaries (CoS) and therefore, a Note be sent for consideration of the matter by the CoS. 6

4.3 The Secretary also stated that the petitioner has demanded that the Government contribution to EPS, 1995 be raised from the present level of 1.16% to 8.33% i.e. equal to the Employers’ contribution to the scheme. The Secretary informed that such a proposal will increase Government’s liability to the Fund from the present level of Rs.2000 crore to Rs.14,000 crore. The Secretary was in consensus to the laudable objective to secure an assured monthly pension of Rs.3000/- to the pensioners under EPS-95 and assured the Committee to impress upon the Government and the Ministry of Finance to immediately agree to Ministry’s proposal of increasing Government contribution from 1.16% to at least 1.79% of wages in order to secure a minimum pension of Rs.1000/- for the EPS-95 pensioners.

Suggestions/view points of Stakeholders (29th July, 2013)

5. The Committee has received more than thousand memoranda from various organizations/individuals expressing views on the subject matter of the petition. The petition was supported by all organizations/individuals. The Committee gave opportunity to some of the prominent organizations/individuals those appeared before the Committee is at Annexure-I. the views expressed in the memoranda as well as during the oral evidence by witnesses have been summarized and given below:-

(i) Pension is a right of the employee and pension payable to a Government employee is earned by rendering long and efficient service and therefore can be said to be a deferred portion of compensation of service rendered;

(ii) Correction in the statutory wage ceiling is long over due, as the last amendment of increasing the wage ceiling from Rs.5000/- to Rs.6500/- was carried out in 2001. It is suggested that the proposed limit of Rs.15,000/- or for Rs.10,000/- should also be assessed actuarially by amending para 3(2) of Employees Pension Scheme 1995 and para 2f (ii) of Employees Pension Scheme 1952; 7

(iii) Consequent on promulgation of Employees Pension Scheme 1995 w.e.f. 16th November, 1995, the existing members of Employees Family Pension Scheme 1971 have become automatically members of Employees Pension Scheme 1995. Consequent upon that the assets and liabilities of Family Pensions Scheme 1971 have been merged automatically for which no option is need to be exercised thereby the pensionable service of such members should be computed telescopically considering the consolidated period of services rendered under both the scheme till the date of end of service i.e. superannuation, retirement and early retirement. Hence, delete the clause of counting service in two stages one past service another pensionable service. It is not fair to interpret that the amount contributed under EFPS-71 may be less comparing to the contributions made under the Employees Pension Scheme 1995, due to less amount of wages they have been paid;

(iv) Under the Employees Pension Scheme 1995, pension should be protected by allowing dearness relief depending on the All India Consumer Price Index to protect pensioner from the inflationary pressure of the market, periodical ad-hoc relief may also be sanctioned as it is being done in the case of the Central Government pensioners.

(v) As computation of pension under the Employees Pension Scheme 1995 is varying from State to State, a uniform computed tabulations for eligibility of pension should commensurate with pensionable services vis-à-vis pensionable pay and should be published through Gazette of India to rule out any confusion.

(vi) Amendment should be done in para 32 of Employees Pension Scheme 1995 regarding actuarial valuation. The exercise of actuarial valuation of pension is causing delay due to collection of data on 8

yearly basis. It was suggested that this exercise may be done at least once in every three years.

(vii) Amendment should be done in para 3 to increase the rate of contribution under the scheme as already prescribed by the Expert Committee to the tune of 14.75% by employer and Government alone.

(viii) Restore the benefit of commutation of pension under 12(A) to commute upto a maximum of 1/3 of his/her pension to receive 100 times of monthly pension.

(xi) Restore the benefit of return of capital as laid down in para 13 of Employees Pension Scheme 1995;

(x) Restore reduction factor at the rate of 3% instead 4% as amended vide GSR No.688 (E) dated 26th September, 2008, which is laid down in para 12(7) of Employees Pension Scheme 1995 for early pension;

(xi) Restore withdrawal benefit on leaving service before being eligible for monthly pension;

(xii) Rules of provisions of Employees Pension Scheme 1995 should not be altered or amended by issuing GSR’s arbitrarily without the consent of Supreme Court or being enacted in the Parliament;

(xiii) Time frame should be fixed to settle the pension claim within 30 days from the date of receipt of claim by PF Authorities. If the PF Authorities fails to settle the claims complete in all aspect within 30 days without sufficient cause, the PF authority shall be liable for the delay beyond the said period and penal interest @12% per annum may be charged on the benefit amount and the same may be deducted from the salary of such authority; 9

(xiv) Contributions towards the Employees Pension Scheme 1995 of employees retired from Food Corporation India and all the regional and Zonal Offices/Headquarters are retained by employer (i.e.) Zonal Offices CPF Cell and are not sent to the concerned Regional Provident Fund Cell (RPFC). All such cases may got identified in all the States and settled.

Findings of the Committee

6. Social security is the security provided by the State or the society to the vulnerable groups of people consisting of the young children, the women, the elderly, the sick, the disabled and others. Employees’ Pension Scheme of 1995 is a social security scheme that makes a comprehensive attempt to provide pension to the employees after superannuation as well as to the surviving members of the family in other contingencies. The Government has introduced this scheme w.e.f. 16th November, 1995 replacing the existing Family Pension Scheme 1971 for the industrial workers through diverting a portion of the employer’s contribution to the Provident fund thereby reducing the PF benefit of the employee to make provision for an insignificant amount towards retirement pension.

6.1 As stated above, earlier it was a family pension scheme which was later converted into a regular pension scheme for employees, who draw less than salary of Rs.6500 per month. This was made compulsory in all establishments having more than 20 employees and having no separate pension scheme of their own which covers around 180 industries and classes of establishments in the public and private sectors. This scheme is supposed to give its members, pension upon retirement/disablement, withdrawal benefit, spouse pension, children pension, orphan pension, disabled child pension, dependent parent pension. This seems a very noble and human scheme of providing overall social security. But the reality is totally different.

6.2 As per the statistics available with the Committee, presently 36 lakhs retired employees are getting the pension under Employees Pension Scheme, 10

1995. More than 30 lakh employees get less than Rs.1000/- per month and more than 25 lakh employees out of these retired employees get even less than Rs.500/- per month. As of now, more than 55 million employees contribute 8.33% but Government contributes only 1.16% thus making a mockery of the whole pension scheme. The result of such a negligible Government contribution is disastrous and injustice for the workers who contribute. Unabated price rise have made the lives of general public even more wretched. The industrial workers after superannuation are quite unable to maintain the same standard of living. Usually the money received through PF or Gratuity by a retired worker is dried up to meet the expenses towards education and marriage of children or for constructing a small house. The money with which he has now to pull on is the pension, the amount of which is so meager that a family cannot survive with it.

6.3 The Committee points out that many State Governments have their own welfare schemes in the form of old-age pension scheme, Kisan pension, disability pension, etc., where people get financial support ranging from Rs.1200 to Rs.1500 per month. But more than 50 million workers who are contributing towards that pension fund are condemned to receive a meager pension of less than Rs.1000 per month. The Committee finds out that the root cause of this inadequate and insufficient pension is less contribution of Government which is only @1.16% which comes to nearly Rs.1000 crore. The expert Committee of CBT, EPFO appointed to review the EPS-95 has done a good job but it came up with short term suggestions not amounting to policies and the Government is totally uninterested in rectifying the flaws in the scheme.

Observations and recommendations of the Committee

7. The Committee feels that EPS is the only financial assurance to retired workers and their families, especially to low and medium level wage earners and failure to strengthen the scheme has undone the very reason for instituting it. The Committee therefore recommends increasing the contribution of 11

Government from 1.16% to at least 8.33%, so that minimum pension would be Rs. 3,000. As per rough estimates, this works out to be Rs. 150 per month per worker as a Government contribution and in aggregate Rs.7000 cr. per annum. To achieve this objective, the Committee stresses upon to provide a minimum pension standard and if the pension entitlement under EPS falls short of standard pension, then additional amount may be made out of the Government funds.

7.1 The Committee notes that keeping wage ceiling of Rs.6500 for more than 10 years hurts the pensioners in two ways, (a) pensionable salary is kept very low and therefore pension payable and (b) growth of EPF accumulations is not consistent with wage earned leading to low accumulation at the time of retirement. When minimum wages in some States for some categories is above Rs.6500, the present wage ceiling is irrelevant in view of surging market situation. The Committee therefore strongly recommends that wage ceiling should be enhanced immediately in such a manner without any adverse effect on the scheme like taking a five years or three year wage average. By this the pension amount will significantly improve and grievances on the quantum can be reduced.

7.2 The Committee is of the view that the Government being the scheme sponsor has to play its role instead of passing the blame on Central Board of Trustees (CBT), Employees Provident Fund Organisations (EPFO) for lack of consensus. The EPFO also has to own up its responsibilities in creating data of desired quality. In case it is unable to create the set of data from its record and or unable to deploy resources for creation of such data the task should be outsourced with strict quality controls that meet the actuarial standards. At this juncture, the Committee feels that while it is necessary to urgently intervene in the matter of EPS-95, problems cannot be solved in isolation unless comprehensive review of EPS and Employee Deposit Linked Insurance (EDLI) Schemes are also done. The Committee found the current EDLI program to be overfunded. The current practices of 12 continuous dilution of PF accumulations for current needs and inability of EDLI to create incentive for enhanced PF accumulations are to be examined and reviewed for correction. The Committee recommends optimizing the use of surplus EDLI funds to provide for relief/indexation of existing pensioners, by adopting suitable scheme intervention. The amount of fund required for indexation i.e. linking pension and neutralizing it against inflation may be made by utilizing interest on the corpus on the EDLI fund.

7.3 The Committee is of the view that a comprehensive study to be made on the EPS pensioners so that their issues can be understood for policy intervention and information to pensioners. The Committee therefore recommends carrying out periodical review of the Scheme so that corrections can be applied to ensure sustainability. The Committee also recommends that EPFO should adopt modern accounting methods consistent with standards prescribed by C&AG and Actuaries Institute so that a transparent accounting, fair actuarial valuations are practiced.

7.4 The Committee after comprehensive study of the intricacies involved in EPS-95 and also after hearing all the stakeholders in the matter has further deduced the following recommendations which the Ministry may consider on urgent basis for implementation so that entire EPS-95 may be made beneficial for those who are working in the unorganized sector of the economy :-

(a) For raising minimum pension to Rs.3000/- as recommended by the Committee in para 7 above, requires urgent restructuring of resources available to Central Board of Trustees (CBT) which is absolutely necessary and the Ministry must take immediate action for such restructuring by increasing the pension contribution from Government from suggested 8.33% to 8.96% so that with revamping of CBT, corpus fund for pension could be raised to considerable proportion. 13

(b) In view of Committee’s recommendations for optimizing the use of surplus EDLI Funds as mentioned in para 7.2 above it is further recommended that employers contribution to EDLI Scheme to be ceased immediately and PF contribution may be raised to 12.50% by which Government can generate greatest good for the greatest number.

(c) The Committee has observed that Article 366 (17) of the Constitution define ‘pension’ as whether contributory or not, of any kind whatsoever payable to or in respect of any person, and includes retired pay so payable, a gratuity so payable and any sum or sums so payable by the way of the return, with or without interest thereon or any other addition thereto, of subscriptions to a provident fund. The Committee has noted from the above Constitutional definition of the pension that pension is in form of a return and therefore it need not be earned separately. Keeping the meaning of the word return in mind, the Committee feels that pension could be a matter of right in lieu of the service rendered by anybody in his/her working carrier particularly in unorganized sector where there is no formal system for old age economic and social security. Accordingly, the Committee feels that pension sector reforms in unorganized sector is an extreme necessity for infusing element of reality in social assistance schemes and welfare funds for the poor.

(d) The Committee also feels that investment of the corpus fund of the EPS-95 is also an urgent necessity for developing future resources for paying pension to adding members in the time to come. The Committee feels that sprucing up of housekeeping activities for efficient running of the scheme is absolutely necessary by prudential regulations. For this 14

purpose, the Committee suggests that investment management of the corpus fund including appointment of professional fund managers, permission to invest in equity stocks, subscribers right to choose portfolio composition for better returns through portfolio liberalization and freedom to select fund manager based on performance, are also urgent necessity. EPS fund managers should be able to leverage reinvestment risk. Further, to protect the retirees against unfavorable circumstances, the Committee suggests that offering contribution protection insurance and relative returns guarantee are a must. It would also like to suggest that the retirees be given a real annuity for which modalities may be chalked out. For the purpose of investment of pension fund, encouraging participation of private institution could also be examined as it could be high return yielding in future. The Committee also feels that having a definite contribution scheme with an element of insurance could lead to more equity and transparency in accommodating necessary benefits for the pension drawee. What is necessary at this stage, the Committee feels is to increase the rate of contribution of stakeholders without changing the basic structure of the scheme of EPS-95.

(e) The Committee in short is of the opinion that main function of the actuary is to determine the total value of pension pay outs in future vis-à-vis accessing of growth of fund’s assets for meeting pension obligation in future. Accordingly, coming to the actuarial valuation of the EPS-95, the Committee would like to recommends that the quantity and quality of data in respect of EPS members, pensioners of the family must be improved significantly by giving priority to data collection 15 and also by increasing the adequacy of the collection so that data developed on the basis assumption could be reduced to the minimum. The Committee is also of the opinion that for proper actuarial studies EPFO should take help of International Labour Organization (ILO) and other similar bodies of international repute for improving data quality and seek the best global practices to arrive at better analysis. The Committee also feels that statistical regression model should be used by the actuaries for arriving at accurate data. The Committee also recommends that the actuarial valuation of the fund may be conducted after every 3 years rather than making it an annual exercise which is essentially burdensome and time consuming. The Government should also take the responsibility to curb the actuarial deficit. The Committee also feel that introduction of double entry system of book keeping is also necessary for proper maintenance of accounts of the EPS-95 which should be audited in regular intervals by recognized chartered accountant or other efficient audit organizations. Action may also be taken by the Ministry to initiate study of actuarial best practices being followed in other Asian and European countries for managing pension funds. The Committee also feels that an up-to-date data base of the existing members and new entrants in the pension scheme should be maintained. In short workforce friendly, financially prudent and progressive approach should be developed to manage growing EPS-95. The Committee also feels that replacing the existing Employees Pension Scheme 1995 with the Provident Fund-cum-Pension Annuity Scheme with the facility of mandatory annuitization could be a better option and would provide promising alternatives. 16

(f) The Committee strongly feels that delinking pensioner under EPS-95 with inflation will not only be an injustice with its members but also will be a glaring pathetic example of discrimination in a scenario when employees in Banking Sector, in insurance industries, in Central and State Governments are given cent percent neutralization on Consumer Price Index (CPI). Moreover, the members of the working class who are contributing so much to the country’s GDP cannot be left out of the umbrella of price indexation benefits for which the Committee feels that the creation of a separate funds will be an ideal solution. The Committee also feels that application of Pension Reform Options Software Toolkit (PROST) method of fund evaluation in consultation with World Bank could also be a healthy method. The Committee therefore insists on the Ministry for immediate action to link pension with price rise neutralization so that the pressure of inflation may not be felt too acutely by the pension drawing members under EPS-95.

(g) The Committee has noted that too much premature withdrawal is a nagging problem that has brought down the size of pension fund affecting future disbursement of pension. This is happening because pension is not at all attractive. The Committee is of the opinion that once the scheme is corrected, this rate of withdrawal will go down substantially. However, the Committee feels that withdrawal option could be kept but only in cases of extreme unavoidable situations. Unscrupulous withdrawal should be discouraged and members should be suitably persuaded to refrain from submission of withdrawal application on non-convincing ground by sensitizing them about the adverse repercussion of too many withdrawals on pension funds. The Committee also feels that 17

revision of superannuation age from 58 to 60 years may also be made to achieve the objective of less addition of new members to EPS-95.

(h) The Committee is also of the opinion that a separate grievances redressal mechanism for pensioners is necessary for dealing with problems. The Committee strongly advocated that the Ministry should take necessary action to set up such grievance cell so that various problems associated with members of the EPS-95 could be addressed effectively and with a comfortable solution. Such grievances cell, the Committee feels should stopped cross subsidization of the upper income groups at the cost of the lower income groups for larger benefits to the larger whole.

(i) The Committee also suggests that if the pension for particular month is not credited in the account of the pensioner within the stipulated period, the pensioners should be compensated with reasonable rate of interest for the period of delay.

(j) The Committee would like to mention that possibility may also be explored for unification of NPS, ESI and EPS-95 under one single administrative agency, if possible, so that maintaining separate corpus funds for pension under separate scheme could be avoided to reduce burden of heavy expenditure on the part of the Government.

7.5 Accordingly, a mix of policies like austerity on benefit promises, reliance on greater funding, relaxation of investment norms, encouraging private participation, enhancing system efficiency and developing regulating capacity could help avert the looming pension crisis and promote better economic security for the aged. The benefit of such a pension regime is also likely to foster aggregate rate of savings and accelerate capital market development in India. APPENDIX-I

Petition submitted by Shri Prakash Javadekar, Member, Rajya Sabha praying for amendment in the Employees Pension Scheme, 1995

To The Council of States (Rajya Sabha)

The petition of Shri Prakash Javadekar, Member of Parliament, Rajya Sabha Sheweth Removal of injustice in the pension scheme known as EPS 95

1. The Employees' Provident Funds and Miscellaneous Provisions Act, 1952 provided social security benefits to the. employees through Employees' Provident Fund Scheme, 1952. As the scheme was not found adequate to meet the social security needs of the employees a family pension scheme 1971 was formulated. This scheme ensured life long pension to the spouse or pension to one child, life assurance benefit, return of employee share, retirement-cum-withdrawal benefit.

2. As further improvement was felt necessary and the need for giving pension to the retired employee, EPS-95 was launched. Benefit of the pension under EPS 95 was extended to the industrial labour on 16th November, 1995. Earlier it was a family pension scheme which was later converted into a regular pension scheme for employees, who draw less than salary of Rs.6500 per month. This was made compulsory in all establishments having 20+ employees and having no separate pension scheme of their own.

3. This scheme is supposed to give member pension upon retirement/ disablement, withdrawal benefit, spouse pension, children pension, orphan pension, disabled child pension, dependent parent pension. This seems a very noble and human scheme of providing overall social. security. But the reality is totally different. 18 19

4. Today more than 55 million employees contribute 8.33%. The employer also contributes 8.33% but Government pays only 1.16%. Thus making a mockery of the whole pension scheme. The result of such a negligible Government contribution is disastrous and it is great injustice for the workers who contribute.

5. Presently 36 lakh employees retired are getting the pension under EPS- 95. More than 30 lakh employees get less than Rs.1000 per month. More than 25 lakh employees out of these retired employees get even less than Rs.500 per month. Sir, you will appreciate this is nothing but injustice and needs immediate rectification.

6. Many State Governments have launched social, welfare schemes like old-age pension, kisan pension, SHG elder women, niradhar pension. This is good concept. Every citizen of India has a right to live decently. These vulnerable sections do not contribute in any pension scheme but get and should get the pension. Many States are giving Rs.1200-1500 per month to such sections. We applaud such schemes and even demand increase in such social security cover.

7. On this backdrop the plight of the contributory employees covered under EPS-95 is pathetic. They do not get even what non-contributor vulnerable sections get under welfare scheme. All these employees are small employees and also vulnerable. Employees working in small establishments like medium level shops, petrol pumps, small offices, establishments and companies are members of this scheme, Even many State enterprises not having their own comprehensive pension scheme are also covered under this scheme. Essentially this is the section of the labour which is doing the real menial jobs. .

8. The root cause of such an inadequate and insufficient pension is the less contribution of the Government. Today Government contributes only 1.16%. This costs Government nearly Rs.1000 crores. The Government must increase its contribution to 8.33%. This will entail an additional expenditure of only 20

Rs.6000 crores. This is not a huge cost to give justice to 55-60 million employees covered under EPS-95.

9. If this kind of contribution is made by the Government which it should then employees will get minimum pension of Rs.3000 per month. This will ensure somewhat justice to this most vulnerable working class.

10. In the meantime, Government has already withdrawn many of the facilities of the EPS-95 scheme. In April 2000, pension was increased by 4% but subsequently it is continuously getting reduced. Notification of 15.6.2007 removed the provision of pre-service benefit. Notification of 9.6.2008 of Labour Department reduced the factors listed in B and D resulting in lesser pension by new calculation. Notification of 20.6.2008 removed the benefits of commutation and the return of contribution class. All these rules were changed without Parliament's ratification. On the above mentioned grounds, the petitioner prays that,

(i) Government should contribute 8.33% in the EPS-95 making equal contribution from the employee, the employer and the Government.

(ii) Ensure minimum pension of Rs.3000 or more.

(iii) The necessary budgetary support should be given.

(iv) Workers should be allowed to choose from the pension plans.

(v) Restore all the facilities withdrawn by various Government orders like commutation, withdrawal, etc.

(vi) EPS-95 pension should be indexed with inflation.

Name and Petitioner Address Signature

Prakash Javadekar, 24, Mahadev Road, Sd./- MP, Rajya Sabha New Delhi APPENDIX-II Comments on the petition received from Ministry of Labour and Employment (vide oM No. R-15025/2/2012-SS-II, dated 18th July, 2012)

Sub:- Petition praying for amendment in the Employees' Pension Scheme, 1995.

The undersigned is directed to refer to Rajya Sabha Secretariat OM No.RS.7(19)/2012-Com-II dated 6-6-2012 forwarding therewith a copy of petition dated 14-5-2012 signed by Shri Prakash Javadekar, Member, Rajya Sabha on the above mentioned subject.

2. In this connection, it is stated that the issues raised by Hon'ble MP are in the nature of demands for increasing benefits under Employees' Pension Scheme, 1995. In this regard, an Expert Committee constituted for reviewing the Employees' Pension Scheme, 1995 had submitted its report to the Government on 5-8-2010 and the recommendations contained therein were submitted to the Central Board of Trustees (CBT), Employees Provident Fund Organisation for consideration on 15th September, 2010. The matter was referred to Pension Implementation Committee (PIC) by the CBT. PIC has since finalized its report and sent it to EPFO for consideration of the CBT. The matter was included in the agenda for 198th and 199th meeting of CBT(EPF). The discussions remained inconclusive and the CBT deferred the discussion. However, point-wise comments are mentioned below:-

Issues raised Comments l. Government should contribute 8.33% The matter of ensuring a minimum in the EPS, 1995 making equal pension Rs.1000/- by raising the contribution from the employee, of the existing Government

21 22

Issues raised Comments

employer and the Government. contribution from l.16% to 1.79%, resulting in an increase in the Govern- ment contribution from Rs. 990 crore to Rs.l533 crore has been taken up with the Ministry of Finance.

2. Ensure minimum pension of The matter was examined by Rs.3000 or more. Pension Implementation Committee (PIC), a Sub-committee of the CBT, which recommended that the minimum pension be increased to Rs.1000/- p.m. as an interim measure. Final decision in the matter is under active consideration of CBT/ Central Government. Further, the matter regarding increasing the minimum pension to Rs.1000/- p.m. has also been taken up with the Ministry of Finance.

3. The necessary budgetary support The matter has been taken up with should be given. Ministry of Finance for consideration

4. Workers should be allowed to No such provision exists in the choose from the pension plans. present scheme.

5. Restore all the facilities withdrawn From the year 2001 onwards the by various Governemnt orders valuations had showed a continuous like commutation, withdrawal etc. deficit in the Pension Fund. The increasing actuarial deficit arising due to high withdrawal rate, generous 23

Issues raised Comments

benefits, higher life expectancy, falling interest rates and raising the wage ceiling from Rs.5000/- to Rs.6500/- compelled the Government to make some reforms in the Scheme for maintaining the viability of the Scheme. In order to wipe out the actuarial deficit in the Pension Fund, the Government has carried out the amendments in the Scheme like revision of factors of Table 'B' & 'D', change in the reduction factor in case of early pension under para 12(7) and deletion of para 12A and para 13 etc.

6. EPS, 1995 should be indexed Under the Employees' Pension with inflation. Scheme, 1995, the quantum of pension is determined by the following factors:-

z Pensionable service of the member

z Pensionable salary of the member

z Past service, if any

z Age

In view of above the pension under EPS, 1995 cannot be indexed with inflation.

This has the approval of Addl. Secretary (L&E). Appendix-III List of representatives of associations and individuals in connection with Meeting of the Committee on Petitions at 11.30 A.M. on Monday, the 29th July, 2013 in Main Committee Room, Ground Floor, Parliament House Annexe, New Delhi on the petition praying for amendment in the Employees Pension Scheme, 1995: I. All India Senior Citizens' Confederation, Navi Mumbai. 2. Shri R.N. Mittal 3. Shri S.C. Maheshwari II. Food Corporation of India Retired Employees & Officers (Direct Recruitees) Welfare Association, Vijayawada 1. Shri D.I. Prasanna Kumar 2. Shri G. Devasahayam III. Social Security Association of India, Kolkata 3. Shri B.N. Som 4. Shri A. Viswanathan IV. Airports Authority Employees' Union, New Delhi 1. Shri S.R. Santhanam 2. Shri Balraj Singh Ahlawat V. The Federation of Indian Bank Employees' Union, Chennai Shri Ashok Gupta VI. Sarva Shramik Sanghatana, Mumbai 2. Shri Uday Bhat 3. Shri Atual Dighe 24 MINUTES OF THE MEETING.OF THE COMMITTEE ON PETITIONS XXXIX THIRTY NINTH MEETING

The Committee met at 11.30 A.M. on Thursday, the 3rd January, 2013 in Main Committee Room, Ground Floor, Parliament House Annexe, New Delhi.

PRESENT

1. Shri Bhagat Singh Koshyari –– Chairman

MEMBERS 2. Shri Nandi Yellaiah 3. Shri Avinash Pande 4. Shri Raja Ram 5. Shri Paul Manoj Pandian 6. Shri P. Rajeeve 7. Shri Ram Vilas Paswan 8. Shri Darshan Singh Yadav

SECRETARIAT 1. Shri R.P. Tiwari, Deputy Director 2. Shri Goutam Kumar, Assistant Director

WITNESS Shri Prakash Javadekar, MP, Rajya Sabha

2. At the outset, the Chairman welcomed the Members of the Committee and Shri Prakash Javadkar, MP, Rajya Sabha and informed them about the agenda for the day i.e. recording of oral evidence of the petitioner Shri Javadekar on his petition praying for amendment in the Employees Pension Scheme, 25 26

1995(EPS-95). In his opening remarks, the Chairman stated that the main prayer of the petitioner in the petition is that the Government should contribute 8.33% in the EPS-95 making it equal to the contribution from the employee, the employer and the Government. He has also prayed to ensure minimum pension of Rs. 3000 or more per month to workers and giving them option to choose any of the prevailing pension plans and indexing of EPS-9 5 with inflation.

3. Shri Javadekar, MP, Rajya Sabha made a detailed power point presentation on the subject matter of the petition and highlighted that under the Employees Pension Scheme, 1995, every establishment having more than 20 employees but not covered under any other pension scheme, e.g. PSUs, industries, offices, media houses, petrol pumps, malls, shops, restaurants and contract labour, etc, were covered. He further informed that as per statistics available, out of 4.1 million pensioners, 3 million pensioners get less than Rs. 100 per month and out of which 1.5 million pensioners get less than Rs. 500 per month as pension under this scheme. He opined that the said scheme which was aimed to provide adequate pension has actually not been able to provide adequate financial support to the retired employees' families. He, accordingly, requested that the Government should review the present scheme which is plagued by various lacunae such as static pension, coverage deficiency, and actuarial deficit.

4. The Committee appreciated the cause raised by the petitioner and was of the view that the Government must increase its contribution towards EPS-95 from existing 1.16% to 8.33% and ensure minimum pension of Rs.3000 or more per month to the retired employees.

5. The Committee, thereafter, decided to invite public opinion on the petition praying for amendment in the Employees Pension Scheme, 1995 and directed the Secretariat to issue Press Communique in the National & Regional dailies for the purpose.

6. A verbatim record of the proceedings of the meeting was kept.

7. The meeting, thereafter, adjourned at 12.27 P.M. XLI FOURTY FIRST MEETING

The Committee met at 3.00 P.M. on Thursday, the 5th February, 2013 in Committee Room 'A', Ground Floor, Parliament House Annexe, New Delhi.

PRESENT

1. Shri Ram Vilas Paswan –– In the Chair 2. Shri Nandi Yellaiah 3. Shri Avinash Pande 4. Shri P. Rajeeve 5. Shri V. P. Singh Badnore

SECRETARIAT 1. Shri Deepak Goyal, Joint Secretary 2. Shri Rakesh Naithani, Joint Director 3. Shri R.P. Tiwari, Deputy Director 4. Shri Goutam Kumar, Assistant Director

Name of the witnesses appeared before the Committee on the petition praying for amendment in the Employees Pension Scheme, 1995:

I. Representatives of Ministry of Labour and Employment 1. Dr. Mrutyunjay Sarangi, Secretary 2. Shri Animesh Bharti, Director

II. Employees' Provident Fund Organisation 1. Shri Anil Swarup, Central Provident Fund Commissioner 2. Shri Sanjay Kumar, TA and CAO 3. Shri Jagmohan, Regional Provident Fund Commissioner 4. Shrimati Aparajita Jaggi, Regional Provident Fund Commissioner 27 28

2 In the absence of the Chairman, Shri Ram Vilas Paswan was voted to the Chair.

3. At the outset, the Chairman welcomed the Members of the Committee and informed them of the agenda for the day i.e. recording of evidence of the representatives of the Ministry of Labour and Employment and officers of Employees' Provident Fund Organisation on the petition praying for amendment in the Employees Pension Scheme, 1995. The Chairman, in his opening remarks mentioned that the petitioner has prayed for enhancement of Government contribution to 8.33% from existing 1.16% to match the contribution made by the employer as well as the employee under EPS-95; provision for minimum pension of Rs.1,000/-per month and indexing of pension with inflation.

4. The Secretary outlined the issues raised in the petition, specifically in context of the Government contribution and submitted to the Committee that they proposed to raise the contribution from 1.16% to 1.79%. He further submitted that the Ministry is vigorously pursuing to fix a minimum pension of Rs.1000/- for the retired employees covered under EPS-95.

5. Some Members raised certain queries as to why the Government contribution has been fixed at 1.16% which is very less in comparison to the contribution made by the employer as well as the employee. One member wanted to know the additional burden on the Government if the minimum pension be raised @Rs.3000/- per month. The queries were suitably addressed by the Secretary.

(The witnesses then withdrew)

6. A verbatim record of the proceedings of the meeting was kept.

7. The meeting, thereafter, adjourned at 4.05 P.M. V FIFTH MEETING

The Committee met at 1l.30 A. M. on Monday, 29th July, 2013 in Main Committee Room, Ground Floor, Parliament House Annexe, New Delhi.

PRESENT

1. Shri Bhagat Singh Koshyari –– Chairman

MEMBERS 2. Shri V.P. Singh Badnore 3. Shri Husain Dalwai 4. Shri Paul Manoj Pandian 5. Shri P. Rajeeve 6. Shri Palvai Govardhan Reddy 7. Shri Arvind Kumar Singh 8. Shri Avinash Pande

SECRETARIAT 1. Shri Deepak Goyal, Joint Secretary 2. Shri Rakesh Naithani, Joint Director 3. Shri R.P. Tiwari, Deputy Director 4. Shri Goutam Kumar, Assistant Director

List of representatives of NGOs and individuals on the petition praying for amendment in the Employees Pension Scheme, 1995:

I. All India Senior Citizens' Confederation, Navi Mumbai. 1. Shri R.N. Mittal 2. Shri S.C. Maheshwari 29 30

II. Food Corporation of India Retired Employees and Officers (Direct Recruitees) Welfare Association, Vijayawada. 1. Shri D.I. Prasanna Kumar 2. Shri G. Devasahayam

III. Social Security Association of India, Kolkata. 1. Shri B .N. Som 2. Shri A. Viswanathan

IV. Airports Authority Employees' Union, New Delhi. 1. Shri S.R. Santhanam 2. Shri Balraj Singh Ahlawat

V. The Federation of Indian Bank Employees' Union, Chennai. Shri Ashok Gupta

VI. Sarva Shramik Sanghatana, Mumbai 1. Shri Uday Bhat 2. Shri Atual Dighe 2. At the outset, the Chairman informed the members about the agenda items before the Committee, i.e. (i) *** and (ii) recording of evidence of the representatives of some associations/ individuals who have submitted their memoranda on the petition praying for amendment in the Employees Pension Scheme, 1995. 2.1 * * * 2.2 * * * 3. Taking up the second item in the agenda for the day, the Chairman apprised that the Committee Secretariat had received more than thousand memoranda on the petition praying for amendment in the Employees Pension Scheme, 1995 in response to the press release issued by the Committee.

*** Relates to other matter. 31

4. The witnesses submitted their view points one after the other, association- wise. The Committee noted the following suggestions made by the representatives of associations and individuals for its consideration:-

(i) Pension payable to a Government employee is earned by rendering long and efficient service and therefore can be said to be a deferred portion of compensation of service rendered;

(ii) Correction in the statutory wage ceiling is long over due, as the last amendment of increasing the wage ceiling from Rs.5000/- to Rs.6500/- was carried out in 2001. It was suggested that the proposed limit of Rs.15,000/- or for Rs.10,000/- should also be assessed actuarially by amending para 3(2) of Employees Pension Scheme 1995 and para 2f (ii) of Employees Pension Scheme 1952;

(iii) Consequent upon promulgation of Employees Pension Scheme 1995 w.e.f. 16th November, 1995, the existing members of Employees Family Pension Scheme 1971 have become automatically members of Employees Pension Scheme 1995. Consequently the assets and liabilities of Family Pensions Scheme 1971 have been merged automatically for which no option was needed to be exercised thereby the pensionable service of such members should be computed telescopically considering the consolidated period of services rendered under both the scheme till the date of end of service i.e. superannuation, retirement and early retirement. Hence, the clause of counting service in two stages one past service another pensionable service should be deleted. It is not fair to interpret that the amount contributed under EFPS-71 may be less comparing to the contributions made under the Employees Pension Scheme 1995, due to less amount of wages they have been paid;

(iv) Under the Employees Pension Scheme 1995, pension should be protected by allowing dearness relief depending on the All India 32

Consumer Price Index to protect pensioner from the inflationary pressure of the market, periodical ad-hoc relief may also be sanctioned as it is being done in the case of the Central Government pensioners.

(v) As computation of pension under the Employees Pension Scheme 1995 is varying from State to State, a uniform computed tabulations for eligibility of pension should commensurate with pensionable services vis-a.-vis. pensionable pay and should be published through Gazette of India to rule out any confusion.

(vi) Amendment should be done in para 32 of Employees Pension Scheme 1995 regarding actuarial valuation. The exercise of actuarial valuation of pension is causing delay due to collection of data on yearly basis. It was suggested that this exercise may be done at least once in every three years.

(vii) Amendment should be made in para 3 to increase the rate of contribution under the scheme as already prescribed by the Expert Committee to the tune of 14.75% by employer and Government alone.

(viii) Restore the benefit of commutation of pension under I2(A) to commute upto a maximum of 1/3 of his/her pension to receive 100 times of monthly pension.

(xi) Restore the benefit of return of capital as laid down in para 13 of Employees Pension Scheme 1995;

(x) Restore reduction factor at the rate of 3 % instead 4% as amended vide GSR NO.688 (E) dated 26th September, 2008, which is laid down in para 12(7) of Employees Pension Scheme 1995 for early pension;

(xi) Restore withdrawal benefit on leaving service before being eligible for monthly pension; 33

(xii) Rules of provisions of Employees Pension Scheme 1995 should not be altered or amended by issuing GSR's arbitrarily without the consent of Supreme Court or being enacted in the Parliament;

(xiii) Time frame should be fixed to settle the pension claim within 30 days from the date of receipt of claim by PF Authorities. If the PF authorities fails to settle the claims complete in all aspect within 30 days without sufficient cause, the PF authority shall be liable for the delay beyond the said period and penal interest @12% per annum may be charged on the benefit amount and the same may be deducted from the salary of such authority;

(xiv) Contributions towards the Employees Pension Scheme 1995 of employees retired from Food Corporation of India and all the regional and Zonal Offices/Headquarters are retained by employer (i.e.) Zonal Offices CPF Cell and are not sent to the concerned Regional Provident Fund Cell (RPFC). All such cases may got identified in all the States and settled.

5. The Committee appreciated all the non official witnesses for giving valuable suggestions on the subject matter of the petition. Some members raised queries which were satisfactorily answered by the witnesses.

(The witnesses then withdrew)

6. A verbatim record of the proceedings of the meeting was kept.

7. The meeting adjourned at 12.47 P.M. VII SEVENTH MEETING

The Committee met at 10.30 A.M. on Thursday, the 29th August, 2013 in Room No. 126 -A (Chairman's Room), 3rd Floor, Parliament House, New Delhi.

PRESENT

1. Shri Bhagat Singh Koshyari –– Chairman

MEMBERS 2. Shri Hussain Dalwai 3. Shri Arvind Kumar Singh 4. Shri A.V. Swamy 5. Shri Avinash Pande

SECRETARIAT 1. Shri Alok Chatterjee, Joint Secretary 2. Shri Rakesh Naithani, Joint Director 3. Shri Rajendra Tiwari, Deputy Director 4. Shri Goutam Kumar, Assistant Director

2. The Committee took up for consideration its draft Hundred and Forty- Seventh Report on the petition praying for amendment in the Employees Pension Scheme, 1995 and adopted the same with minor modifications.

3. The Committee authorised its Chairman and in his absence Shri Avinash Pande to present the Report to the Rajya Sabha on Tuesday, the 3rd September, 2013.

4. The meeting, thereafter, adjourned at 10.50 A.M.