Higher EPS: The High Court of Kerala directed EPFO to dispense with joint declaration document

The High Court of Kerala has directed the Employees' Provident Fund Organisation (EPFO) to dispense with the production of joint declaration under paragraph 26(6) of the EPF Scheme.  The court has also directed that in cases where the employees concerned are unable to upload the application for claim for higher pension online, they be permitted to submit the application in hard copies.

The court in its Interim Order dated 12.04.2023 in W.P. (C) No.8979/2023 has ordered, “Accordingly, the Employees Provident Fund Organization and the authorities under the same are directed to make adequate provisions in their online facility to enable the employees/pensioners to furnish the options in tune with the directions of the Honourable Supreme Court, without the production of the copies of option under paragraph 26(6) of the Scheme, 1952 and the details thereof, for the time being. If appropriate modifications cannot be made in the online facility, feasible alternate arrangements, including the permission to submit hard copies of the options, shall be made/granted. The facilities mentioned above shall be made available to all the employees/pensioners within a period of ten days from today.”

“As a President of Karnataka Employers Association,  I have taken up the matter with the Central Provident Fund Commissioner EPFO New Delhi to take steps for implementing the above orders of the High Court,” said B.C. Prabhakar, Advocate and President Karnataka Employers’ Association. 

He earlier told BT that the documents asked are not available with the employees. In the case of employees who are in service and continue to be the members of the Provident Fund Scheme may be able to collect it from the employers and submit. In the case of employers who have retired but are eligible to claim the higher pension as per the judgment of the Supreme Court would have multiple difficulties in collecting the required documents and information.  The employees who have worked with different employers would have more difficulties than those employees who have continued in the same establishment throughout their service.

The Supreme Court of India in the case of EPFO vs. Sunil Kumar had decided that only those employees who have contributed to the provident fund on actual salary i.e., over and above statutory limit of salary for coverage under the EPF, to the Provident Fund are eligible to claim for higher pension.  The PF department vide their circular dated 29.12.2022 have stipulated that the following documents should be submitted along with the application for claim for higher pension.  

a.   Proof of joint option under Para 26(6) of the EPF Scheme duly verified by the employer; and

 

b.   Proof of joint option under the proviso to erstwhile Para 11 (3) duly verified by the employer; and

 

c.    Proof of remittance in Provident Fund on higher wages exceeding the prevalent wage ceiling of

 

d.   Proof of remittance in Pension Fund on higher wages exceeding the prevalent wage ceiling of «5000/6500, if any; and

 

e.   Written refusal of APFC or any other higher authority of EPFO to such requests / remittance.

The Interim Order stated, “It can be seen that, right from the inception, higher contributions were being accepted by the EPFO, even without submitting options under para 26(6) of the Scheme 1952. It is also evident that in some cases, instructions were issued from some of the offices of EPFO to accept the same, and in some cases, accounts of respective employees were also updated in tune with such higher contributions…. Further, the petitioners also have a contention that, going by the language used in para 26(6) of the Scheme, 1952, it could be interpreted as an enabling provision, which provides the power to the EPFO to accept higher contributions in certain circumstances and the same cannot be treated as a provision which makes the submission of option mandatory.”