The Employees Provident Fund Organisation (EPFO) has issued updated Frequently Asked Questions (FAQs) following the Supreme Court’s ruling on increased Provident Fund pension.
Earlier, the Supreme Court upheld the the legality and validity of the Employees’ Pension (Amendment) Scheme, 2014, by the Employees’ Provident Fund Organization, while making adjustments to specific provisions.
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Here is the revised set of Frequently Asked Questions (FAQs).
Q1-The circulars no. Pension/2022/54877/15149 dated 29.12.2022 and circular no. Pension/2022/56259/16541 dated 20.02.2023 specify requirement of proof of joint option under Para 26(6) of EPF Scheme, 1952 duly verified by the employer. What documentary evidence can be considered as proof of joint option under Para 26(6)?
1. Permission under Para 26(6) uploaded by the applicant at the time submission of Application for Validation of Option / Joint Option or available in Office.
2. If permission under Para 26(6) is not readily available then Field Offices should
verify that
a) Employer share of PF contribution has been remitted on employee’s pay
exceeding the prevalent statutory wage ceiling of Rs.5000/6500/15000 per
month from the day the pay exceeded the wage ceiling or 16.11.95
whichever is later, till date/ till the date of retirement or superannuation as
the case may be; and
b) Administrative charges payable by employer have been remitted; and
c) Provident Fund account of employee has been updated with interest as
per Para 60 of EPFS,1952 on the basis of such contribution received; and
d) Any of the following documents have been submitted along with
Applications for Validation of Option / Joint Options as proof of joint option
and permission under Para 26(6).
–Wage Details submitted by the employer along with Applications for Validation of Option / Joint Options
–Any salary slip / letter from employer authenticated by employer
–Copy of joint request and undertaking from employer
–Letter from PF office issued prior to 04.11.2022 indicating PF
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contribution on higher wages
The applicants who qualify 2(a) to (d) above and are already contributing/ have
contributed till retirement/superannuation on actual (higher) pay, if they have not submitted their joint requests and undertaking of employer, can submit the same at the time of final claim settlement through their last employer. Joint Request and Undertaking of employer for permission under Para 26(6) (performa enclosed) can be submitted by pensioners/members any time before the grant of pension on higher wages in accordance with decision of Hon’ble Supreme Court dated 04.11.2022.
Q2- While filing online Application for Validation of Option / Joint Options, no documentary evidence has been submitted as proof of joint option under Para 26(6) of EPF Scheme, 1952. Whether this Application / Joint Option can be
rejected on this ground?
No. The RPFC will obtain any of the documents as mentioned in Answer 1 from the employer and no Application for Validation of Option / Joint Option can be rejected only on this ground if otherwise eligible. It will be the duty of the RPFC to make sure that any of the proofs as mentioned in Ans 1 above is obtained from the employer. Members of Exempted PF establishments
Q3- If a member/past member of a PF exempted establishment has not
submitted Joint Request and undertaking from the employer to the Trust for
contribution on higher wages under the rules of the Trust, how will such cases be
governed?
The cases shall be governed in the same manner as at Answers 1 and 2 above. Computation of Pension
Q4- What will be the applicable formula for member pension calculation?
The pension calculation will be as per para 12 of EPS 95. The date of
commencement of pension will determine the applicable formula for calculation of pensionable service, pensionable salary and pension.
Q5-How will member pensionable salary be calculated for members of EPS,
95 eligible for pension on higher wages who retired prior to 01.09.2014, where the date of commencement of pension is prior to 01.09.2014?
Since date of commencement of pension is prior to 01.09.2014, the pensionable salary shall be calculated based on the average monthly pay drawn during contributory period of service in the span of 12 months preceding the date of exit from the membership of the pension fund.
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Q6-How will member pensionable salary be calculated for members of EPS, 95 eligible for pension on higher wages, who retired prior to 01.09.2014 but where the date of commencement of pension is on or after 01.09.2014?
Since date of commencement of pension is on or after 01.09.2014, the member pensionable salary shall be calculated based on the average monthly pay drawn during the contributory period of service in the span of 60 months preceding the date of exit from the membership of the pension fund.
Q7-How will member pensionable salary be calculated for members of EPS,
1995 who have retired after 01.09.2014?
The member pensionable salary calculation shall depend on the date of
commencement of pension. For example:-
i. ‘A’ retired from establishment ‘X’ at the age of 60 years on 01.01.2015. Even
though his date of retirement is 01.01.2015, for the purpose of EPS, 1995 he will
be treated as superannuated at the age of 58 i.e. prior to 01.09.2014.
Accordingly, his pensionable salary shall be calculated based on the average
monthly pay drawn during contributory period of service in the span of 12
months preceding the date of exit from the membership of the pension fund.
ii. ‘B’ retired from establishment ‘X’ at the age of 50 years on 01.01.2012. Even
though he retired in 2012, he can opt to take pension at the age of 58 i.e. after
01.09.2014. Accordingly, his pensionable salary shall be calculated based on
the average monthly pay drawn during contributory period of service in the span of 60 months preceding the date of exit from the membership of the pension fund.
Q8- A member will be retiring in future (say for example 2030). How will his
pension be calculated?
The pension will be calculated based on the provisions of EPS, 1995 that will exist as on the date of commencement of pension. Payment of Arrears of Pension
Q9-Will my pension arrears be paid to me or adjusted against the demand of the contributions on the higher wages?
Arrears of pension will be paid to the pensioners in accordance with the existing process to comply with income tax provision relating to TDS.
