Though it is still unclear whether the Employees’ Provident Fund Organisation (EPFO) will extend the deadline of May 3 for submitting the joint option for higher pension, many Employees’ Pension Scheme (EPS) subscribers are still wondering whether they can avail of the higher pension benefits, and how to go about the whole process.
Earlier this year, EPFO allowed its subscribers to opt for a higher pension amount by increasing their contribution towards the EPS. As per the new rules, subscribers can contribute 8.33 per cent of their actual basic pay towards the EPS to earn a higher EPFO pension.
Earlier, the pensionable salary was capped at Rs 15,000 per month. Employees who were members of the EPF as on September 1, 2014, will be allowed to opt for a higher pension.
Who can apply for higher EPS pension?
Employees who became members before 1 September 2014 and continue to be one.
Employees and employers who had contributed a salary exceeding the standard wage ceiling of Rs 5,000 or Rs 6,500.
The EPFO circular has also stated that the higher pension option is available to subscribers who either contributed on actual wages higher than Rs 5,000 or Rs 6,500 per month prevalent threshold pensionable salary or exercised their option for higher pension or their request for higher pension was declined by EPFO authorities before the amendment to EPS-95 in 2014.
What is a joint application form?
As per the EPFO circular, the joint application form once submitted, it will be examined by the EPFO field office. The data, requirements and the wage details once given by the employers, will be verified with the data available with the EPFO.
Once the verification process is over, the EPFO will calculate the dues and an order will be passed for depositing/transferring of dues.
“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 EPFO said.
The EPFO provided an online facility till May 3, 2023 (from the earlier deadline of March 3, 2023) to submit the joint application form to receive a higher pension from EPS.
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How your pension amount will be calculated under higher pension
If you opt for the higher EPS contribution, the pension amount will be calculated on on your actual salary. It would be the average of Basic salary of the EPS subscriber + Dearness Allowance of the last 60 months at the time of retirement and the number of years you served. The maximum pensionable service period is capped at 35 years.
DA is the cost of living adjustment that the Central Government pays to public sector employees and pensioners. It is calculated as a percentage of the basic salary to curb the effect of inflation.
New pension rules
In a circular issued on April 23, the EPFO said that applications submitted by employees and joint options for higher pension will be examined by the field office.
In case, the requirements are complete and accurate, the wage details submitted by the employers will be verified with the data available with the field offices.
In case of data mismatch, employees and employers will be given a one-month time to provide complete information.
The EPFO, in its circular, said that in case the submitted application form/join option is not approved by the employer, the employer will be approached once for additional proof or evidence or to correct any mistakes/errors. The opportunity will be for a period of one month.
Once done, then the joint application form will be accepted by the EPFO. The order will be issued regarding transferring or depositing dues. And if the complete information is not received within a month, the EPFO will pass an order on merit.
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The EPFO has said that in cases where the submitted information is not complete or seems erroneous or any information in application/joint option for needs correction request or not found eligible, APFC/RPFC-II will seek information from the employers under information to employees/pensioners within one month.
However, if the complete information is not received then the APFC/RPFC-II/RPFC-I will pass the order on merit, the EPFO said.
Applicants can register any grievance related to higher pension applications on EPFiGMS after submission of the request form and payment of due contributions, if any.
Benefits of availing pension under EPS
The EPS offers the following benefits to private sector employees covered by the Employees’ Provident Fund. Public sector employees already get these benefits.
Private sector workers can get pension for life to members and spouses. Pension starts at the age of 58 and is based on the number of years of service and the basic salary. Widows get a pension after the demise of their spouse, who has signed in for the scheme.
If an EPS subscriber dies during service, his widow will get his pension for life or till she remarries.
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Two children will get an additional sum equal to 25 per cent of the pension. If there are more than two children, the benefit will continue till the youngest is over 25.
If a member is permanently and totally disabled during service, he will get a full pension for life.
