EPFO Higher Pension: Field officers will verify the uploaded data and documentation and as per the latest circular.
EPFO Higher Pension Scheme: The The Employees’ Provident Fund Organisation’s (EPFO) has said that its field officers will have to complete the scrutiny of joint applications by employees and employers confirming that they wish to apply for higher pension on actual salary within 20 days. The latest update came after EPFO issued a circular on Friday.
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“…applications for validation of joint option shall be scrutinised expeditiously and it shall be ensured that the demand letter to employer/communication to employer is issued for providing any additional proof or evidence or correct any mistakes/errors including (those) made by employers/pensioners in respect of each application for validation of joint option within 20 days of receipt of the application in the login of the dealing assistant,” the EPFO circular said.
For employees, the deadline for choosing the higher pension option under the Employees’ Pension Scheme (EPS) 1995 is June 26. It will then have to be validated by the employer, followed by EPFO’s field officers taking it up for assessment.
Field officers will verify the uploaded data and documentation and as per the latest EPFO circular, they will have to do so within 20 days of having received the application.
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Background
Employees who were members of EPFO and Employees’ Pension Scheme (EPS), prior to September 1, 2014, and who continue to be in service but had missed choosing the higher pension option earlier can apply for a higher pension.
Those who retired before this date and had signed up for the higher pension option will have to validate the information.
If a member decides to opt for pension on your actual, and not statutory salary of Rs 15,000, they will have to make the decision to file a joint application with their employer for the purpose.
EPFO Higher Pension Last Date
In May, EPFO has extended the date for filing applications to opt for a higher pension till June 26, 2023.
This was done in order to provide a larger window of opportunity and in order to enable all eligible persons to file their applications.
Earlier, the online facility was to remain available only till May 3, 2023.
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Pension calculated on actual salary
Currently, employer deducts 12 percent of basic salary as EPF contribution. The organisation also contributes an equal amount to create a retirement corpus. A part of it (8.33 percent) is directed to the EPS while the balance flows into provident fund.
However, it is calculated on the statutory wage ceiling of Rs 15,000. So, at present, out of your employer’s contribution, Rs 1,250 (8.33 percent of Rs 15,000) goes towards EPS. This amount joins the pool created under EPS to pay regular pension income to member-employees with at least 10 years’ service and their dependent family members.
You can, however, now choose to direct 8.33 percent of your actual salary towards the pension pool, translating potentially into a higher pension post-retirement.
Additionally, 1.16 percent from your employer’s contribution will also flow into EPS, with the balance 2.51 percent being directed to your EPF.
In case you discover errors in your application after filing it, you can delete and submit it again.
EPFO had said that a delete button has been provided on the EPFO portal to the employees to delete the application for validation of option/joint option so that if they so desire, they may file afresh after correcting errors. This functionality is available provided the employer has not acted upon the application.
The announcement came after EPFO received many representations from pensioners and members with requests to provide an online facility to correct errors in their applications for validation.
Next, the EPFO officers will evaluate and approve your application to pave the way for a higher pension.
