Nearly 80 lakhs of retired EPS pensioners are being cheated and exploited by the policies of Modi government. They are not only suffering from deprivation of necessary life support, but also of self-respect promised by the Constitution of India. They are organising themselves to fight against their cheating and exploitation by Modi Government.

A Scheme Thrusted on Workers

In the era of neo-liberal economic policy, EPS 95 was formed in year 1995 as a scheme under Employees Provident Fund and Miscellaneous Provisions Act 1952. This is a central act and covers 186 industries, public cooperative or private, dealing in production and services. These are enlisted in Schedule-I of the act. The coverage of establishments in these 186 industries is mandatory under the act. Any company that wants exemption must provide a scheme that provides benefits on par or better than those provided under EPS 95.

The working class was demanding pension as third retirement benefit. The government tried a scheme that was not acceptable to the workers. The scheme proposed was self-contributory, with a defined contribution, and a defined benefit. The worker was asked to forego 8.33% of management contribution to his provident fund as contribution to the pension corpus. The government also was to contribute 1.16%. The wages considered for this contribution was either entire wages or with a statutory ceiling. The ceiling was Rs 2500 at the beginning and that was subsequently raised from time to time and now stands at Rs 15000.

The stand of Trade Unions towards this scheme was not united. Some like INTUC did not oppose. Some like AITUC said it is not satisfactory but can be altered ones it comes into force. Some like AICCTU, opposed it totally. This divided stand helped the government to introduce the scheme by issuing an ordinance on 16 November 1995.

Start of the Pensioners’ Movement

It was only in 2005 that a large number of persons started retiring with EPS pension. That is when several of them realized the disadvantages of the scheme and felt cheated. The pension earned could be anywhere between Re 1 to 1000. They started organising themselves in various states separately. The AICCTU activists took the lead in connecting with these groups of activists after 2008. The organisations formed in various states came together in 2012 to form a coordination committee and organised its first National Convention at New Delhi to come up with an agreed charter of demand.

They demanded a minimum pension of Rs 6500 (subsequently revised to 9000) with DA, ration, free health facility and travel concessions.

The initial activity was limited to taking out marches to PF reginal offices, to MPs and ministers. They also held a dharna at Delhi to press for demands. They also presented themselves before various Government committees. In 2010 the “Expert Committee” accepted the concept of minimum pension. The Rajya Sabha Standing Committee on labour, also known as Koshiyari committee in 2013. proposed a minimum pension of Rs. 3000, accepted the DA-related demands, and underlined the government’s responsibility to raise fund for providing pension.

Modi Govt’ Betrayal

The “Achhe Din Modi government” that came to power in 2014, made such changes to the scheme in September 2014 that were against the interests of pensioners through resolution e 609. They included a pro rata method of pension calculation, with the last 60 months’ average salary as pensionable salary, a one-year window period for opting for higher option etc. All this was silently done behind the veil of a positive media perception regarding a minimum pension Rs 1000. This Rs 1000 was also subject to various deductions. But nearly 5 lakh widows got Rs. 1000 minimum pension. This was paraded as triumph, while the overall losses suffered by pensioners was disregarded.

Battles Legal and Political

The Kerala Committee of AICCEPFPA challenged the changes under resolution e 609 in High Court and got the changes scrapped. The Provident Fund authorities moved the Supreme Court but was defeated. The pensioners groups also moved various High Courts to get higher option pension etc. All this legal activism was dampened by Modi Government itself moving the Supreme court. The Supreme Court upheld the changes made by Modi Government.

AICCEPFPA presented itself before the Lok Sabha Standing Committee on Labour Textile and Skill Development. It presented the study that exposed the Modi government’s policy of cheating and looting. It showed that the ratio of pension disbursed to interest earned was never more than 38%. This clearly was looting the pensioners of pension that could provide better-quality life. The amendments to the scheme by “Acche Din Modi Government” further eroded this to 25%. This was cheating. It was possible to pay minimum pension Rs 6000 when the government only paid Rs. 1486 average. Nobody got more than Rs. 4200. This expose further fuelled the anger and strength of pensioners.

Rampant employment of Contractual labour and abolished policy of inspections have led to systemic problems of claim settlements. This is helping EPFO to collect money with no responsibility of claim settlement at retirement.

2024 Elections and Beyond

In late 2022, the Supreme Court made the decision of upholding the changes made by the Modi Government in 2014. The Kakinada meet of AICCEPFPA gave a call for defeat of Modi government and co-operation with all toiling masses. This was ratified at the 3rd national Convention at Shegaon, Maharashtra. The pensioners conducted agitations and propaganda nearly every month till the Lok Sabha election of 2024 worked for INDIA Coalition during the elections.

AICCEPFPA met at Hyderabad on 8th of January 25 to chart out a post-election strategy. It resolved to spread the movement further. It resolved to conduct aggressive agitation like Tala Thoko, Rasta Roko, Rail Roko. It also resolved to co-ordinate with movements of toiling masses, workers, farmers etc. It resolved to fight the cheating and looting policies of Modi Government, to work for a respectable life as promised by the Constitution of India.

The pensioners are demanding:

1)    Minimum pension Rs. 9000 per month with DA to compensate price rise.
2)    Essential commodities on ration, concession in travel and free medical treatment.
3)    No to further privatization of funds and 100% counter guarantee to privatised funds.
4)    Adequate staff for running the scheme.
5)    Systemic correction for 100% claim settlement.