The year 2025 will bring major changes in pension rules, starting January 1, 2025. These changes are expected to provide more financial stability and economic security to pensioners.
Key reforms, including better pension plans and increased pension amounts, are being discussed to improve the quality of life for pensioners.
Pension Is a Constitutional Right
The Kerala High Court recently made an important ruling that pension is a constitutional right.
This means that pension payments should not depend on the government’s decision and cannot be stopped for financial reasons.
The court also ruled that pensioners should not be denied their pension just because they haven’t submitted a life certificate.
To make this process easier for pensioners, the court ordered that bank officials should visit pensioners’ homes to verify
and collect life certificates, especially for those who cannot go to the bank due to health issues.
Relief for EPS-95 Pensioners
In 2025, EPS-95 pensioners will enjoy greater convenience. Starting January 1, 2025, they will be able to withdraw their pensions from any bank branch, thanks to a new system called CPPS.
This update will allow pensioners more freedom to choose where they want to receive their pension.
Additionally, the central government has instructed employers to update the higher pension applications in the system by January 31, 2025.
This will help ensure that eligible pensioners get their higher pension payments on time.
Pension Hike to 70% of Last Basic Pay
There is a growing demand from the Bharat Pensioner Samaj for pensioners to receive 70% of their last basic salary after retirement, instead of the current 50%.
This change is important because pensioners used to receive 70%, but this was reduced to 50% during Indira Gandhi’s government.
The society believes it’s time to restore the 70% pension to give pensioners a better quality of life.
Age-Based Pension Increases
Another proposal being discussed is to increase pensions based on age. Currently, pensioners only get a pension increase after the age of 80.
However, Bharat Pensioner Samaj suggests that pension increases should begin at age 65. The proposed increases are:
1) 5% increase after age 65
2) 10% increase after age 70
3) 15% increase after age 75
This proposal aims to provide more financial security and support for pensioners as they age.
How Will Pensioners Benefit from the New Rules?
1) Under the new CPPS system, pensioners can withdraw their pensions from any bank, offering more flexibility.
2) The updated system will allow pensioners to receive higher pension benefits more quickly.
3) Age-based pension increases will help reduce the financial burden on pensioners.
4) Banks will visit pensioners’ homes to help verify life certificates, making the process easier for those unable to go to the bank.
