EPFO releases updated FAQ on higher pension implementation

The Employees’ Provident Fund Organisation (EPFO) has issued an updated set of FAQs on the implementation of higher pension following the Supreme Court ruling in November last year.

“Arrears of pension will be paid to the pensioners in accordance with the existing process to comply with income tax provision relating to tax deducted at source”, the EPFO has said in the Frequently Asked Questions, in response to a query on whether pension arrears will be adjusted against the demand for higher contributions.

The updated FAQs have also reiterated the formula of computation of pension as well as the list of documentary evidence required for submitting the joint option for higher pension under the Employees’ Pension Scheme, 1995. Previously, the EPFO had issued a similar set of FAQs in June this year to explain issues to applicants for higher pension.

There also remains a lack of clarity when the EPFO will be able to start implementing the higher pension. At present, it is in the processing the applications and it is expected that there could be some further movement by January. It had received over 17.49 lakh applications for higher pension.

K.E. Raghunathan, a member of the EPFO’s Central Board of Trustees representing employers welcomed the FAQs and said it would help pensioners. “If this was issued a few months back, it would have saved the confusion among the pensioners and also the EPFO officers. But of course, it is always a better late than never and I appreciate their action on this now,” he said.