Last week, EPFO came out with a procedure to enable subscribers and their employers to jointly apply for higher pension under Employees’ Pension Scheme (EPS).
All eligible members can opt and apply jointly with their employers for higher pension till May 3, 2023 at unified members’ portal of retirement fund body Employees’ Provident Fund Organisation.
The URL on the EPFO unified members’ portal activated recently shows clearly that the last date for availing the option of higher pension is May 3, 2023, news agency PTI reported.
Last week, EPFO came out with a procedure to enable subscribers and their employers to jointly apply for higher pension under Employees’ Pension Scheme (EPS).
Read More: EPF interest credit: Follow these steps to check provident fund balance
Earlier, there were apprehensions that March 3, 2023 is the last date for opting for higher pension.
Earlier, the Supreme Court in its order on November 4, 2022 had mandated the EPFO to provide four months to all eligible members to opt for higher pension.
The four-month period for opting for higher pension was to end on March 3, 2023 in view of apex court order. Thus, there were apprehensions among members that the deadline will end on March 3, 2023.
Read More: PM Modi to release 13th instalment of Rs 16,800cr under PM-KISAN
What was the Supreme Court order?
In November 2022, the Supreme Court had upheld Employees’ Pension (Amendment) Scheme 2014. The EPS amendment of August 22, 2014 had raised the pensionable salary cap to Rs 15,000 a month from Rs 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.
In an office order, EPFO had provided for dealing with the “Joint Option Form’ by field offices of the body.
EPFO stated that ‘a facility will be provided for which URL (unique resource location) will be informed shortly. Once received, the regional PF commissioner shall put adequate notice on the notice board and banners for wider public information’.
Also Read- EPFO higher pension calculation 2023: How much monthly pension can you get?
It provided 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 regional provident fund office concerned 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/her joint option form and payment of due contributions, if any.
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 Rs 15,000 per month. This will facilitate the subscribers to contribute higher to the scheme and get enhanced benefits accordingly.
Read More: Rules Change From March 1, 2023: Know How These Changes Will Affect Your Monthly Expenses
Why was the limit raised?
The wage ceiling of Rs 6,500 per month as provided in the employees’ pension scheme was revised in 2014 to Rs 15,000 per month, to provide a wide coverage to formal sector employees who were not the part of the scheme earlier and also to help employees after their retirement.
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..
