EPFO has not received a single application since the inception of the scheme in March 1996 for permission under a clause, now mandatory, to claim the benefit of higher pension
The Employees’ Provident Fund Organisation (EPFO) has enabled subscribers and their employers to jointly apply for higher pension under the employees’ pension scheme (EPS). However, according to a Times of India report, procedural complexities are making it virtually impossible to apply.
The EPFO has not received a single application since the inception of the scheme in March 1996 for permission under a clause now made mandatory to claim the benefit of higher pension, according to the TOI report quoting response to an RTI query on February 3.
The Employees’ Pension (Amendment) Scheme, 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.
However, this can be done only if the employer and the employee had received prior permission from the EPFO.
According to the TOI report quoting the RTI response on how many employees or members have excersised this option since March 1996, the EPFO said “As per available office records, there are ‘NO’ joint options/ undertaking received in writing under Para 26(6) of EPF Scheme, 1952, during the period from March 16, 1996, to December 31, 2002.”
The EPFO also has no information on record of the total number of serving employees, or retirees and pensioners, till March 31, 2022, who exercised the joint option under this clause.
Read More: Higher EPFO pension: Why you should avoid going for it
Recently, the EPFO higher pension application date was extended to May 3. Now, 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.
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.
