EPFO: Over 8000 EPS members apply for higher pension, deadline ends for EPS members retired before 1 Sept 2014
2 min read 05 Mar 2023, 11:22 AM ISTEPFO came out with a procedure to enable subscribers and their employers to jointly apply for a higher pension under the Employees' Pension Scheme (EPS)
PremiumThe deadline for opting for higher pension for members of Employees Pension Scheme 1995 (EPS) who retired before September 1, 2014, ended on Saturday. However, other members of the EPS can apply for higher pensions till May 3, 2023, a labour ministry statement said.
“In respect of persons who were EPF members as on 01.09.2014, The online applications are being preferred by the employees since 27th February,2023 and already 8,897 members have applied to their employers," according to the statement by the Ministry of Labour & Employment.
“The online joint (employee and employer) option form with the necessary documents has been hosted by EPFO in the unified portal for contributing on higher salary to the EPS-95. The form paves the way for giving effect to the SC order dated 04.11.2022, while adhering to the basic scheme provisions. More than 8,000 members have already applied online as on date though the submission deadline is 03rd May, 2023," the statement by the Ministry of Labour & Employment further stated.
Since, the contributions of both the employee and employer on higher wages are involved, the EPF and EPS-95 schemes require the joint request when they contribute on higher salary. This is not a new requirement and predates the EPS-95 and the position has been affirmed by SC in the RC Gupta case stating that it is a necessary pre-cursor for exercising joint option on higher salary under EPS.
The circular dated 20th February 2023 adheres to the provisions of the Scheme and complies with the Supreme Court orders. The correct assessment of contributions and their deposit and diversion to Pension Fund, the past services rendered and the remittances made are necessary for correct calculation of the benefits and valuation of the Pension Fund.The EPFO closed the options on 4th of March 2023 for the retired EPS members (prior to 01.09.2014 and whose options were not considered earlier). It has received 91,258 online applications from this category of employees as on 04.03.2023.
EPFO came out with a procedure to enable subscribers and their employers to jointly apply for a higher pension under the Employees' Pension Scheme (EPS).
In November 2022, the Supreme Court upheld the Employees' Pension (Amendment) Scheme 2014. The EPS amendment of August 22, 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 EPS.
