The Dispute Over Higher Pensions For Retirees Of Visakhapatnam Steel Plant (RINL) Escalates

The dispute over higher pensions for retirees of the Visakhapatnam Steel Plant (RINL) has escalated, with Gajuwaka MLA and State Telugu Desam President, Palla Srinivas, planning to involve Union Labour Minister Dr. Mansukh Mandaviya to seek resolution. This move follows ongoing distress among RINL pensioners due to delayed payments under the Supreme Court’s November 2022 judgment, which allowed eligible employees to apply for pensions on full salary.

Timeline of Events:

1. Supreme Court Judgment (November 2022): Employees were given four months to apply for pensions on full salary.
2. Applications Submitted (May-June 2023): RINL management submitted details of eligible aspirants to the Regional PF Commissioner, following which demand notices were issued to around 3,000 individuals.
3. Payments Made (By September 2023): Approximately 1,800 pensioners deposited over ₹400 crore, many taking loans or foreclosing savings in anticipation of timely pension disbursement.
4. Delays in Disbursement (March 2024 Onwards): Despite higher pension orders being issued to some, payments were stalled due to objections raised by the EPFO Zonal Commissioner, Vijayawada, and pending guidelines from Delhi.

Recent Developments:

• After clarifications from Delhi’s EPFO Head Office on January 18, 2025, MLA Palla Srinivas met Regional PF Commissioners Vijay Kumar Prasad and Pawan Jasti, urging them to release the higher pensions in line with the Supreme Court verdict. However, RPFC cited trust rules as grounds for denial.
• MLA Palla asserted that the RPFC’s interpretation disregarded the non-obstante clause in the trust rules, which should prioritize the Supreme Court’s ruling.
• He assured pensioners of escalating the issue to the Union Labour Minister, alongside a delegation of affected RINL pensioners, to seek immediate resolution.

Impact on Pensioners:

• Retirees, who deposited significant amounts expecting higher pensions with arrears, are now facing severe financial hardships.
• Continued delays have eroded trust and caused widespread distress among the affected employees and retirees.

The MLA’s initiative to involve higher authorities underscores the urgency of resolving this pressing issue, which has implications not only for the financial well-being of pensioners but also for the credibility of EPFO in honoring legal directives.