Open letter to all concerned for justice under right to equality before law
POWERGRID RETIRED EMPLOYEES ASSOCIATION (PREA)
(Registered under Societies Registration ACT XXI 1860)
Dr. N. S. Saxena
President
Dated: 17/07/2020
Subject: Higher Pension Under EPS – 95 : A case of Justice Delayed
To,
Open Letter to All
The ‘POWERGRID Retired Employees Association (PREA)’, is engaged in the well-being and welfare activities of the superannuated employees of the ‘Power Grid Corporation of India Ltd’, a ‘Maharatna’ Company. The employees of the company, contributed significantly and effectively for the development of electric power transmission infrastructure, leading to the development of‘National Grid’, during their ‘First Innings’. The concept of‘One Nation One Grid’ has since been achieved andhas enabled transfer of large blocks of power from one corner of the country to another. It has facilitated the development of‘Power Market’at all India level, an important element for the ‘Power Sector Reform’. This transmission network is also used for telecommunication services.
During last two decades, most of the employees associated with the conceptualization and implementation of National Grid have reached the sun-set years of life. At this juncture, they are feeling deprived of major chunk of their contributory pension, under EPS 1995 Scheme of Govt. of India. Under the scheme the contribution to pension fund was restricted to a ‘Wage Ceiling’ limit notified by EPFO. However, the Scheme had a provision of higher pension contribution for consenting employees under clause 11(3). This clause was ignored by ‘Employees Provident Fund Organization (EPFO)’, which is administering the scheme, and the EPFO never sought any consent from the employees and thus denied them an opportunity to avail the higher pension.
Subject: Higher Pension Under EPS – 95 : A case of Justice Delayed
To,
Open Letter to All
The ‘POWERGRID Retired Employees Association (PREA)’, is engaged in the well-being and welfare activities of the superannuated employees of the ‘Power Grid Corporation of India Ltd’, a ‘Maharatna’ Company. The employees of the company, contributed significantly and effectively for the development of electric power transmission infrastructure, leading to the development of‘National Grid’, during their ‘First Innings’. The concept of‘One Nation One Grid’ has since been achieved andhas enabled transfer of large blocks of power from one corner of the country to another. It has facilitated the development of‘Power Market’at all India level, an important element for the ‘Power Sector Reform’. This transmission network is also used for telecommunication services.
During last two decades, most of the employees associated with the conceptualization and implementation of National Grid have reached the sun-set years of life. At this juncture, they are feeling deprived of major chunk of their contributory pension, under EPS 1995 Scheme of Govt. of India. Under the scheme the contribution to pension fund was restricted to a ‘Wage Ceiling’ limit notified by EPFO. However, the Scheme had a provision of higher pension contribution for consenting employees under clause 11(3). This clause was ignored by ‘Employees Provident Fund Organization (EPFO)’, which is administering the scheme, and the EPFO never sought any consent from the employees and thus denied them an opportunity to avail the higher pension.
A few vigilant employees of affected organizations insisted for higher pension and resorted to legal recourse after denial of their legitimate right. Frustrated with non-responsive attitude of EPFO, employees started approaching HCs within their jurisdiction. However, while the courts proceedings were in progress, the EPFO,on 1st September, 2014, delivered another blow to the hopes of distressed employees bybringing ‘GSR 609(e)’. Although it enhanced the wage ceiling limit from ₹6, 500 to ₹15,000, howeverit, deleted the provision of higher pension altogether from EPS-95 Scheme, along with some other changes. This action further rubbed the salt on the wounds of distressed employees.
Hon’ble HC of Kerala in two separate judgments upheld the ‘Right of Employees’ to opt for higher pension and also set aside GSR 609(e).Similar decisions came from several other HCs in the country. The matter reached Hon’ble SC,which also upheld the decision of Kerala and other HCs and directed EPFO to grant higher pension to all consenting employees covered under EPS-95,in its ruling dated 4th October, 2016. The EPFO in March, 2017 issued a circular for compliance of the SC ruling for all the employees covered under EPS-95, without any discrimination. It was celebrated by all the employees covered under EPS-95.
However, after three months on 31st May, 2017, the EPFO took a sudden U-turn, and issued an orderrestricting the benefit of higher pension only toemployees of Non-Exempted organizations.It created discrimination amongst employees on the basis of how the Provident Fundsare managed by the various organizations in the country. It may be mentioned that there was no such discrimination in the Hon’bleSC ruling. Perusal of the facts mentioned in the subsequent paragraphs will make it clear that employees have nothing do with the manner and style of management of PF money by an organization. This action by EPFO has created ‘haves’ and ‘have-nots’for no fault of the employees thus defying the‘Right to Equality’ provided under ‘Article 14’of theIndian Constitution. As a result, a large number of Employees from exempted organizations either individually or collectively started taking legal recourse against this act of contempt by EPFO.
Hon’ble HC of Kerala in two separate judgments upheld the ‘Right of Employees’ to opt for higher pension and also set aside GSR 609(e).Similar decisions came from several other HCs in the country. The matter reached Hon’ble SC,which also upheld the decision of Kerala and other HCs and directed EPFO to grant higher pension to all consenting employees covered under EPS-95,in its ruling dated 4th October, 2016. The EPFO in March, 2017 issued a circular for compliance of the SC ruling for all the employees covered under EPS-95, without any discrimination. It was celebrated by all the employees covered under EPS-95.
However, after three months on 31st May, 2017, the EPFO took a sudden U-turn, and issued an orderrestricting the benefit of higher pension only toemployees of Non-Exempted organizations.It created discrimination amongst employees on the basis of how the Provident Fundsare managed by the various organizations in the country. It may be mentioned that there was no such discrimination in the Hon’bleSC ruling. Perusal of the facts mentioned in the subsequent paragraphs will make it clear that employees have nothing do with the manner and style of management of PF money by an organization. This action by EPFO has created ‘haves’ and ‘have-nots’for no fault of the employees thus defying the‘Right to Equality’ provided under ‘Article 14’of theIndian Constitution. As a result, a large number of Employees from exempted organizations either individually or collectively started taking legal recourse against this act of contempt by EPFO.
These organizations include large Central Sector PSUs like NTPC, ONGC, BHEL, IOCL, POWERGRID, among others.The employees of several private sector organizations including TATA are also affected and moved SC, besides several organizations from the state sector.
The Exempted Organizations:
The Exempted Organizations:
These Organizations are those, where the pension funds are consolidated by PF Trust and deposited with EPFO, rather than individuals depositing directly. Thus the PF Trusts are reducing the administrative burden of EPFO and take responsibility of any lapses therein. The pension formula and contributions are same in both the cases.
The legal validity of EPFO orders of May, 2017 and GSR 609(e) of September, 2014 is being examined by various HCs and SC and a prolonged legal battle is being fought by employees of Exempted Organizations. Interestingly, employees of a few exempted Organizations have started getting higher pension due to HC/SC intervention, whereas a large number of employees are suffering from the unjust actions of EPFO. Apart from several petitions in various HC, more than 50 petitions are pending with Hon’ble SC, including a review petition by EPFO and SLP by UOI. No hearing has taken place for more than 6 months now because of the pandemic; and no hearing is in pipeline in the near future.
The issue has also been raised in the Lok Sabha, a couple of times and Hon’ble MoLE has expressed sympathy towards the vows of retired employees. It is learnt that a proposal of enhancement of the minimum pension has already been forwarded by EPFO to MoLE for its consideration. However, the proposed enhancement is too meager and is far below expectations of retired employees. Recently Hon’ble Member of Parliament Ms Hema Malini Ji led a delegation to Hon’ble PM and requested him to increase the minimum pension to at least ₹ 7, 500 among other demands. She has recently reminded him by writing a letter on 2nd July, 2020.
It is requested that the GOI may look into the issue sympathetically on overall bases including the option for Higher Pension. The ruling given by Hon’ble SC in October, 2016, is clear and does not discriminate between Exempt or Non-Exempt organizations and must be implemented uniformly. The SLP of UOI and Review Petition of EPFO pending with Hon’ble SC may be withdrawn immediately and EPFO may be directed to abide by the decision of Hon’ble SC in letter and in spirit. It will be great help for superannuated employees of Powergrid Corporation of India Ltd., and shall go a long way in solving financial problems during the dusk of their life span.
Hoping for a favorable response in propagation of this message.
With warm regards.
Sd/-
(Dr. N S Saxena)
The legal validity of EPFO orders of May, 2017 and GSR 609(e) of September, 2014 is being examined by various HCs and SC and a prolonged legal battle is being fought by employees of Exempted Organizations. Interestingly, employees of a few exempted Organizations have started getting higher pension due to HC/SC intervention, whereas a large number of employees are suffering from the unjust actions of EPFO. Apart from several petitions in various HC, more than 50 petitions are pending with Hon’ble SC, including a review petition by EPFO and SLP by UOI. No hearing has taken place for more than 6 months now because of the pandemic; and no hearing is in pipeline in the near future.
The issue has also been raised in the Lok Sabha, a couple of times and Hon’ble MoLE has expressed sympathy towards the vows of retired employees. It is learnt that a proposal of enhancement of the minimum pension has already been forwarded by EPFO to MoLE for its consideration. However, the proposed enhancement is too meager and is far below expectations of retired employees. Recently Hon’ble Member of Parliament Ms Hema Malini Ji led a delegation to Hon’ble PM and requested him to increase the minimum pension to at least ₹ 7, 500 among other demands. She has recently reminded him by writing a letter on 2nd July, 2020.
It is requested that the GOI may look into the issue sympathetically on overall bases including the option for Higher Pension. The ruling given by Hon’ble SC in October, 2016, is clear and does not discriminate between Exempt or Non-Exempt organizations and must be implemented uniformly. The SLP of UOI and Review Petition of EPFO pending with Hon’ble SC may be withdrawn immediately and EPFO may be directed to abide by the decision of Hon’ble SC in letter and in spirit. It will be great help for superannuated employees of Powergrid Corporation of India Ltd., and shall go a long way in solving financial problems during the dusk of their life span.
Hoping for a favorable response in propagation of this message.
With warm regards.
Sd/-
(Dr. N S Saxena)
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