EPFO gives last chance to opt for higher EPS pension: Latest guidelines

Are you a member of Employees' Pension Scheme (EPS) prior to 31 August, 2014 and continue to be the same? Then there is a last chance for you to opt for higher pension just a fortnight before the end of the four-month deadline by the Supreme Court.

Retirement fund body EPFO or Employees' Provident Fund Organisation on Monday issued a new set of guidelines for those who had not opted for pension contributions at a higher wage than wage ceiling and continued to be in service on or after 1 September, 2014.

EPFO's new procedure will enable subscribers and their employers to jointly apply for higher pension under Employees' Pension Scheme (EPS).

The instructions issued today stated that an online facility will be provided for employees who continued to be a subscriber of EPS on or before 01.09.2014, details of which will be informed shortly.

"Once received, the regional PF commissioner shall put adequate notice on the notice board and banners for wider public information," according to the circular.

Earlier in November last year, the apex court had upheld Employees Pension (Amendment) Scheme 2014.

The EPS amendment of 22 August, 2014 had raised the pensionable salary cap to ₹15,000 a month from ₹6,500 a month, and allowed members along with their employers to contribute 8.33 per cent of their actual salaries (if it exceeded the cap) towards the EPS.

In an office order, the EPFO provided for dealing with the 'Joint Option Form' by field offices of the body.

Further, the retirement fund body said that each application will be registered, digitally logged and the receipt number will be provided to the applicant.

It further stated that the office in-charge of the concerned regional provident fund office shall examine each case of joint option on higher salary and intimate the decision to the applicant through e-mail/post and later through SMS also.

It also provided that any grievance by the applicant can be registered on EPFiGMS (grievance portal) after submission of his joint option form and payment of due contributions, if any.

The order stated that these directions are being issued in compliance with the order of Supreme Court on November 4, 2022.

EPFO has asked its field offices to provide an option for higher pension to eligible subscribers in accordance with the Supreme Court order.

According to the EPFO circular on December 29, 2022 the central government has directed to implement the directions in the order.

The apex court had given all EPS members, as on September 1, 2014, six months to opt for the amended scheme.

The apex court in its order gave four more months to eligible subscribers to opt for higher pension under EPS-95.

The court had also struck down the requirement in the 2014 amendments mandating employee contribution of 1.16 per cent of the salary exceeding ₹15,000 per month. This will facilitate the subscribers to contribute higher to the scheme and get enhanced benefits accordingly.

The EPFO circular had also provided for the higher pension option for those eligible subscribers who either contributed on actual wages higher than ₹5,000 or ₹6,500 per month prevalent threshold pensionable salary or exercised their option for higher pension or their request for higher pension was declined by EPFO authorities before the amendment to EPS-95 in 2014.

The eligible subscribers would have to apply jointly with their employer for the enhanced benefit in the application form prescribed by the commissioner and all other required documents like joint declaration etc.

An EPFO trustee K E Raghunathan who is representing employers, appreciated the issuance of the circular, which details on implementation of SC judgment, in spite of complexity, financial burden, and need for simplified procedure.

"Finally, it is a happy ending for all. I congratulate the EPFO officials and ministry for the circular with the able guidance and directive from hon'ble Union labour minister in ensuring a smile on the face of the senior citizens.

With agency inputs