Business News/ Money / Personal Finance/  EPFO issues guidelines on higher pension after Supreme Court ruling. How to apply

The Employees' Provident Fund Organisation (EPFO) has issued clarification in regard to eligibility criteria for higher pension. The Provident Fund (PF) regulator issued circular in compliance to the Supreme Court order laying down the terms and condition for an EPFO subscriber for getting higher pension. The EPFO clarification also instructs EPFO members on how to apply for the higher pension after the Supreme Court order. The EPFO also made it clear that fund authorities shall implement the Supreme Court ruling within a period of eight weeks, subject to EPFO directions contained earlier in paragraph 11(3) of the 1995 scheme.

Clarifying on the eligible EPFO subscribers for higher pension after the Supreme Court ruling, EPFO circular says, "The employees who have retired before 1st September 2014 upon exercising option under paragraph 11(3) of the 1995 scheme shall be covered by the provisions of the paragraph 11(3) of the pension scheme as it stood prior to the amendment of 2014."

The EPFO circular has now made it clear that following EPFO subscribers would be eligible for higher pension after the Supreme Court ruling:

1] The EPS member who as employees had contributed on salary exceeding the then prevalent wage ceiling of 5,000 or 6,500; and

2] EPFO subscriber who exercised joint option under the Employees’ Pension Scheme (EPS) of the pre-amendment scheme while being members of EPS-95, and

3] EPFO member whose exercise of such option was declined by the EPFO.

How to eligible pensioners can apply for higher pension?

The eligible EPS members need to visit concerned regional EPFO office and submit the required application along with proper documents. Here is step by step guide:

1] The request will be made in such form and manner as may be specified by the commissioner;

2] The application form for validation will contain the disclaimer as ordered in the aforesaid government notification;

3] In case of share requiring adjustment from provident fund to pension fund and if any, re-deposit to the fund, the explicit consent of the pensioner will be given in the application form;

4] In case of transfer of funds from exempted provident fund trust to pension fund of EPFO, an undertaking of the trustee shall be submitted. The undertaking shall be to the effect that due contribution along with interest-up to the date of payment, will be deposited within the specified period; and

5] The method of deposit of such funds will follow through subsequent circulars.

The Supreme Court in its November order provides that employees who were existing EPS-95 members as on September 1, 2014, can contribute up to 8.33 per cent of their actual salaries, as against 8.33 per cent of the pensionable salary capped at 15,000 a month, towards pension. It had also struck down the requirement in the 2014 amendments mandating employer contribution of 1.16 per cent of the salary exceeding 15,000 per month.

The Supreme Court in the said judgement allowed employees for a window of 4 months from the date of judgement, to opt for a higher pension".

Asit Manohar
Chief Content Producer at Live Mint Digital Team
Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
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Updated: 30 Dec 2022, 12:48 PM IST
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