Under the EPFO scheme, the proposal has been made to increase the superannuation age on attainment of which subscriber is allowed to draw pension from 58 currently to 60. The move if implemented will enable subscribers to grow their retirement funds and at the same time will enable pension fund to lessen its deficit.
The body managing EPF holds the view that pensionable age under the scheme should be similar to other government schemes and NPS that also have superannuation age as 60 years.
Also, the body can considering giving other incentives like additional bonus to individuals who agree on drawing their pension at the age of 60.
In amendments proposed to the EPF Act, 1952, the retirement fund manager said, "Age of superannuation, which is 58 years, needs to be increased to 60 years as most of the pension funds world over, are giving pension after 65 years".
As per a leading dailies report, the proposal shall be placed before the CBT of the EPFO in its next meet expected to be held in November.
Notably of the 12% contribution made by the employer to an employee's EPF account, 8.33% goes to the pension, with a ceiling on pensionable salary at Rs. 15,000.