As the last date of May 3, 2023 approaches to apply for a higher pension, Employees’ Provident Fund Organisation (EPFO) has issued a circular clarifying on how to apply for validation of joint options, including the procedure for scrutiny of information and wage details submitted by the employee and employer.
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“Applications/ Joint options will be examined by Field. In case, the requirements are complete, the wage details submitted by the employers will be verified with the data available with the field offices. The cases where FO details and employers’ details match, the dues will be calculated and an order will be passed by APFC / RPFC-II / RPFC-I for depositing / transferring the dues. The cases where there is a mismatch, the same will be informed to the employer and the employee / pensioner by APFC / RPFC-II. They will be given a time of one month to complete the information,” states the EPFO circular.
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“The EPFO has now provided some initial clarity on what kind of internal process will be followed once an application for higher pension is submitted. However, in my view, this will be the first of a few clarificatory circulars that will have to be issued in this respect. From a reading of this circular, it is not clear as to whether timelines have been issued only for the employer and employee to respond to EPFO communication or whether each stage of the internal process (i.e., the process by which the application travels through various EPFO departments and culminates in an order passed by the APFC / RPFC- II) also has definitive timelines. We would also have to wait and see as to what kind of reasoning will form the basis of an order accepting / rejecting a particular application (and also how long this will take). The EPFO must also provide some guidance on what employers can do if there is insufficient data available with them in terms of old wage records and other documents,” said Sowmya Kumar, Partner, IndusLaw.
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In November 2022, the Supreme Court allowed employees who missed the earlier deadline to submit fresh options within four months. The deadline has now been extended until May 3, 2023. However, the process for submitting a joint application was complicated, especially due to a mandatory requirement in the form that requests details of the option under para 26(6) of the Scheme, 1952. The Kerala High Court recently exempted this requirement and instructed EPFO to make adequate provisions in the online system for pensioners to submit options without producing copies of option under para 26(6) of the Scheme, 1952. If the online system cannot be modified, the Court directed EPFO to make necessary arrangements for filing, including allowing the submission of hard copies of the options.
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If the employer does not approve the submitted application form/joint option, they will be given a chance to provide additional proof or correct any errors before the form is rejected. This opportunity will be given for one month and the employees/pensioners will be informed of it. “If the employer does not approve the submitted application form/joint option, they will be given a chance to provide additional proof or correct any errors before the form is rejected. This opportunity will be given for one month and the employees/pensioners will be informed of it,” according to the EPFO circular.
