The retirement body Employees Provident Fund Organisation (EPFO) recently came out with a set of guidelines for employees giving them an option to seek a higher pension. The EPFO’s latest guidelines allow members to go beyond the pensionable salary capped at Rs 15,000 a month.
Now, the EPFO has activated the url of the unified members’ portal which states that subscribers seeking a higher pension can apply for it by May 3, 2023. “Joint options under erstwhile para 11 (3) and para 11 (4) of EPS 1995 for employees who were in service prior to 1st September 2014 and continued to the in service on or after 01.09.2014 but could not exercise joint option under erstwhile provision to para 11 (3) of EPS 1995 to be exercised on or before 3rd May 2023,” the EPFO website said.
Read More: EPFO higher pension calculation 2023: How much monthly pension can you get?
Link: https://unifiedportal-mem.epfindia.gov.in/memberinterface/
The Supreme Court in its order dated 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, however, the last date has now been extended by two months.
EPFO higher pension guidelines
Under the EPFO’s revised procedure, subscribers and their employers can jointly apply for a higher pension under the Employees’ Pension Scheme (EPS). This means that now members can contribute 8.33 per cent of their ‘actual basic salary’.
In 2014, the pensionable salary cap was hiked to Rs 15,000 per month, up from Rs 6,500 per month by the EPS amendment of August 2014. This allowed members and their employers to jointly contribute 8.33 per cent of their actual salaries towards EPS, if exceeding the cap.
Read More: EPFO Update: Higher Pension Application Date Extended, Members Can Apply Till May 3; Check Details
Higher pension from EPFO: Are you eligible?
In its circular, the EPFO clarified that the following subscribers would be eligible for higher pension after the Supreme Court ruling:
Existing employees, or those who retired after September 1, 2014, are eligible to claim higher pension based on actual salary beyond the prescribed ceiling in the Employees’ Pension Scheme (EPS) of 1995.
The employees and employers who had contributed on salary exceeding the prevalent wage ceiling of Rs 5,000 or 6,500.
Subscribers who did not exercise joint option under the Employees’ Pension Scheme (EPS) of the pre-amendment scheme while being members of EPS-95.
How to apply for higher pension?
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 such as joint declaration etc.
Few days after releasing the guidelines, the retirement body, on its portal, announced that online facility for employees to file a declaration opting for higher pensions jointly with their employers is “coming soon.”
