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Business News/ News / India/  EPFO extends deadline to apply for higher pension under EPS
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EPFO extends deadline to apply for higher pension under EPS

A higher EPS contribution would be determined from the date of their membership for employees who were part of the EPF before 01/09/2014 but were unable to accept or use the joint option by 03/03/23.

In a press statement dated March 13, 2023, the Employees' Provident Fund Organization (EPFO) announced the extension of the deadline for submitting proposals for higher pensions under the Employees' Pension Scheme (EPS) to May 3. (MINT_PRINT)Premium
In a press statement dated March 13, 2023, the Employees' Provident Fund Organization (EPFO) announced the extension of the deadline for submitting proposals for higher pensions under the Employees' Pension Scheme (EPS) to May 3. (MINT_PRINT)

In a press statement dated March 13, 2023, the Employees' Provident Fund Organization (EPFO) announced the extension of the deadline for submitting proposals for higher pensions under the Employees' Pension Scheme (EPS) to May 3. Employees who retired before September 1, 2014, and selected their option to receive the higher pension for all eligible pensioners under the Employees' Pension Scheme of 1995 (EPS 95), have until May 3 2023, rather than the previous March 3, 2023 deadline.

“The Supreme Court had held that the employees who have retired before 1st September 2014 and had exercised the option under paragraph 11(3) prior to their retirement shall be eligible for pension on higher wages. Instructions in this regard had been issued to field offices vide circular dated 29.12.2022 and 05.01.2023. Online facility for submitting applications for validation of joint options to the employees who retired before 01.09.2014 and had exercised joint options before their retirement had been provided on the EPFO Website till 03.03.2023. Now, on demand of the employees’/employers’ associations the Chairman, Central Board of Trustees, has extended the time for submitting applications for validation of joint options from such employees till 3rd May 2023," said EPFO in an official statement on Monday.

You must make additional EPS contributions if you choose to receive a higher pension. The employer contribution is capped at 8.33% of 15,000 per month, however, you can opt to contribute up to 8.33% of your salary to the EPS (i.e., 1,250 per month) to take benefit of a higher pension during your retirement years. If you have been a member of the Employees' Pension Scheme (EPS) for at least 10 years and have achieved the age of 50 or 58, based on your joining date under EPS, you may be eligible for a higher pension.

Following the extension, Kuldeep Parashar, CEO & Co-Founder at PensionBox said “The extension of the deadline for the application of higher pension for retired employees under the EPS scheme is a welcome move by EPFO. In today's volatile market, it is important to seek out less risky or risk-free schemes that provide better returns and peace of mind. While the market may experience ups and downs in the future, retirees can rest assured that they have made a wise decision by choosing a more secure investment option."

“We always have recommended our users to have a balanced portfolio that takes into account risk tolerance and long-term financial goals. Retirement planning is not just about accumulating wealth, but also about ensuring that one can maintain a comfortable lifestyle in their golden years without worrying about financial insecurity," said Kuldeep Parashar.

“Therefore, it is imperative that retirees take advantage of the extended deadline and explore the EPS scheme to secure their future. By choosing a scheme that offers guaranteed returns, they can not only enjoy financial stability but also have peace of mind in retirement. Remember, a secure financial future is not just about accumulating wealth but also about ensuring that it lasts for a lifetime," Kuldeep Parashar further added.

A higher EPS contribution would be determined from the date of their membership for employees who were part of the EPF before 01/09/2014 but were unable to accept or use the joint option by 03/03/23. This was made explicit by the Supreme Court in a recent announcement. In its judgement from November 4, 2022, the Supreme Court had given eligible employees four months from the date of the ruling to choose the higher pension. The application deadline was thus extended to March 3, 2023. According to the EPFO's most recent statement, May 3, 2023, has been set as the deadline for all eligible employees to submit an application for the higher pension.

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Published: 14 Mar 2023, 02:23 PM IST
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